Money laundering | Monetary authorities to step up fight against financial crime

The respective monetary authorities of Macau and Hong Kong have joined hands with mainland financial organizations to draft and implement new tactics in the fight against money laundering, financial crime and terrorist funding.

The Monetary Authority of Macau (AMCM) said in a statement that representatives from Macau, Hong Kong and the People’s Bank of China met in the MSAR on Friday to deliberate methods to tackle money laundering.

Both the AMCM and the Hong Kong Monetary Authority (HKMA) agreed during the meeting to establish a “Financial Security Expert Alliance” for experts to promote the “security and stability” of financial markets in the region.

Following the meeting, the two authorities published similar but separate statements reaffirming their “determination” to fight financial crime.

The AMCM statement said that the alliance will “make good use of Macau’s unique environment to accumulate practical experience in regard to financial security.”

“The alliance effectively maintains and continuously promotes the security and stability of financial markets through relevant regulatory arrangements, including the application of technology and organizing forums,” the department continued.

All parties at the meeting reached a consensus and agreed to publish Friday’s outcome, the AMCM statement added. The HKMA additionally proposed the establishment of a “Fraud and Money Laundering Intelligence Taskforce” (FMLIT), according to a report by the South China Morning Post.

A spokesperson from the Hong Kong authorities told the SCMP that the initiative, led by the Hong Kong police, “aims to promote a more effective partnership among the financial sector, law enforcement and regulator.”

The joint statements of intent reflect the concerns over capital flight among political and regulatory decision-makers in Beijing. To highlight this, the AMCM statement noted that the issue of financial security has been “elevated to the level of national governance.”

An unidentified security insider told the SCMP that the move had probably been coordinated by Beijing and that it is a sign that the mainland is seeking a more holistic solution to the problem in the two Special Administrative Regions.

Macau has a notorious reputation as a money laundering haven, which some speculate is linked to the city’s gambling industry.

Last week, however, a new group of anti-money laundering specialists denied that Macau’s reputation was an accurate depiction of the city.

The Macau Anti-Money Laundering Specialists Association blamed foreign media for perpetuating the image and called on local media to help unravel the city’s reputation. DB