Financial institutions may be required to withhold fake money received
Under a bill currently receiving parliamentary consideration, financial institutions may be required to retain counterfeited money that they received for investigative purposes.
The bill for the Legal System for Currency Issuance is being discussed at the Second Standing Committee of the parliament. Following a recent meeting, Committee President Chan Chak Mo disclosed that consideration of the bill is nearly complete.
In addition, Chan also disclosed that the latest version of the bill proposes that financial institutions have the obligation to retain alleged counterfeit money, record the personal particulars of the holders, and notify the police as soon as possible.
This proposal is in contrast to an earlier version, which proposed to apply this obligation to a broader range of parties. In response to this initial proposal, the government explained that financial institutions are more equipped to identify and detect counterfeit money. However, small businesses will have the right to decline taking suspected counterfeit money.
The government has also proposed that damaged or defaced bank notes can be exchanged as long as they bear clearly visible serial numbers and the defacement or damage covers over 75% of the note. The industry, however, recommends clearer provisions in this respect.
It was also proposed that approval by the Monetary Authority of Macao should be obtained prior to replacing legal tender, and guidelines must be followed. The Committee suggested the government clarify the legitimate reasons for replacement to avoid falling afoul of any legal grey areas.
Moreover, the government explained that removing the proposal to prohibit anybody from accepting suspected counterfeit money is intended to avoid mass refusals or excessive anxiety over potential liability in this regard. However, the Committee worries that the absence of this proposal will imply an absence of the right to decline counterfeit money. The government pledged to further examine this.
