Mandatory declaration of valuables flowing across the border

The Executive Council announced yesterday in a press conference that its period of analysis of the government’s proposal that aims to control the entry and exit of cash and other tradable products across the borders has concluded.

The measure would fulfill the 40 recommendations made by the Financial Action Task Force on Money Laundering (FATF) to all the group members of the Asia/Pacific Group on Money Laundering (APG), of which the MSAR is a part.

The bill, called “Control of the cross-border transportation of cash and bearer negotiable objects,” proposes the obligation of a declaration to the Customs Service of cash and tradable values to the value of USD15,000 (MOP120,000) or above. The measure is applicable to any person entering the territory regardless of whether the entrant is a foreigner or a local resident.

Adding to this, the bill also proposes that any person leaving the territory could be asked by customs officers to declare values of the same amount.

As explained by the Executive Council spokesperson Leong Heng Teng, “Anyone who fails to comply with the duty of filing a declaration is guilty of an administrative offense punishable by a fine worth 1 to 5 percent of the amount that exceeds the reference amount,” adding that such fines would not be in an amount less than MOP1,000 nor more than MOP500,000, although in “justifiable situations, the fine can be reduced or waived.”

Questioned by the press on whether or not such a measure would fail to comply with the Basic Law that states that Macau enjoys a free movement of capital status, Leong said, “This will not affect the free movement [nor] stop any commercial activity.”

Adding to this reply was a representative of the SA who said, “There is no limitations on the maximum amount [that people can bring] into the territory. It is merely necessary to declare it.”

Regarding what would happen to the data collected by the SA in the declaration forms, the same representative said: “The information will be sent to the competent authorities, such as the Financial Intelligence Office,” adding that such information, “will not be shared to any third-party and namely to the Central Government authorities.” As informed, such data will then be destroyed after a period of five years.

Customs service director reacts to worker’s arrest

On the sidelines of a press conference of the Executive Council, the Macao Customs Service (SA) director Alex Vong expressed his sadness at the arrest of an SA staff member by the Judiciary Police (PJ) under allegations of fraud involving credit cards and stolen information. “We are very sad about this case. We had a meeting with the Chiefs [of SA] to ensure that our work was not affected,” he said. In addition, Vong stated that the Customs Service will start disciplinary proceedings against this staff member as well as continue to cooperate with the investigation.”