Gov’t proposes tighter rules to start and run local associations

The government launched a public consultation yesterday on proposed rules and regulations for the new “Legal Regime of Associations.”

The new regulations propose amending the current legal framework in several respects, from the requirements for establishing an association to the ongoing operation of existing associations.

As noted by Secretary for Administration and Justice Wong Sio Chak during yesterday’s press conference to unveil the public consultation document and explain its objectives, the new legal regime proposes amending the law on the exercise of the right of association and clarifying the requirements and conditions for establishing associations.

Among these amendments are new regulations on association names and designations, the qualifications and number of founders and administrators, as well as the substantive requirements for associations’ bylaws, which will come under closer scrutiny.

The rules also propose that the Identification Services Bureau (DSI) oversee all aspects of associations’ operations as a unified authority. The DSI currently handles several aspects of association registration, but its duties primarily concern names, official designations and the qualifications of founding members.

Another aspect to be introduced is a new mechanism to supervise associations’ operations, which is also said to include clearer provisions for handling cases of non-compliance, verifying the adoption of corrective measures and, in the most severe cases, dissolving associations.

One of the measures to be introduced is a “dormancy” mechanism, which is proposed to apply when an association is considered inactive or its representatives cannot be contacted at the registered address, among other situations.

According to officials, if introduced and enforced, this mechanism should be used immediately to verify the existence and status of the 12,400 associations currently registered in Macau.

The aim is to ensure that the number of registered associations reflects those that actually exist and that the groups are acting in accordance with their bylaws and the purposes for which they were registered.

According to Wong, only about 60% of the 12,400 associations registered in Macau are active, with the remaining 40% having been inactive or dormant for a long time.

Authorities said that some of these have been inactive since the establishment of the Macau Special Administrative Region in 1999, and they intend to “clear them,” while also providing an opportunity for others to establish associations with similar names, purposes and functions, if that is the wish of residents.

The draft regulations, presented to the public and now under public consultation for 45 days through Sept. 23, are said to have resulted from an in-depth study that lasted more than two years and took into account legislation from neighboring countries and regions.

Noting that the Macau Basic Law grants residents the right of association, the government said, “However, the provisions… are too general and scattered; in particular, the rules governing the creation and operation of associations are not very stringent, addressing only certain basic administrative formalities, which not only leads to a lack of effective oversight mechanisms but also to a lack of mechanisms for dissolving associations that operate in violation of the law or that cease to operate for an extended period, leading to a continuous increase in the number of associations or to their irregular operation.”

The lack of specific rules for the enforcement of supervision and penalties for associations that breach the law has also been said to “pose risks to national security and the security of the MSAR.”

Regarding these concerns, the government mentioned potential risks of non-compliance with regulations on money laundering and terrorist financing, among others.

New rules propose dissolving associations over security, public order concerns

The government is proposing new mechanisms to dissolve associations whose existence is deemed to threaten national security, public order or the rights and freedoms of others, according to a consultation document on amendments to the “Legal Regime of Associations.”

Under the proposal, the Public Prosecutions Office or any interested party could ask a court to dissolve an association if its existence violates public order or good morals. If the request is made by an interested party, prosecutors would also have the right to participate in the proceedings.

Administration and Justice Secretary Wong Sio Chak said freedom of association is protected under the Basic Law but must be exercised within legal limits related to national security, public order and the protection of others’ rights and freedoms.

Government data shows that more than 40% of associations in Macau have failed to submit required information for more than five years. Under the proposal, associations would first receive notice and a period to rectify the issue before losing their legal status.

Decisions could generally be challenged through administrative or judicial channels, but associations dissolved following a national security assessment would not be entitled to appeal.