Sudden closure of bank accounts may be related to ‘unlawful’ remittances

Several banking institutions in Macau have reportedly informed clients of sudden account closures, according to sources familiar with the issue.

An investigation by The Times suggests that these closures may be connected to accounts involved in “unlawful” remittance activities, particularly among non-resident workers (TNR) from the Philippines.

The investigation reveals that many of these workers use a “middleman” to transfer money to GCash, an e-payment platform.

The process typically involves the workers sending money to a middleman’s bank account, who then acts as an informal remittance service, offering a slightly better exchange rate.

Filipino workers in Macau can currently remit money through local remittance companies, such as BDO Unibank, Pacific Ace, and Global Remit, with fees ranging from MOP25 to MOP30, depending on the method used for the receiver to collect the funds.

The intermediaries charge a flat fee of MOP20 and allow transfers to be made through bank transfers, eliminating the need to visit a remittance center.

Some would also opt to visit a bank and deposit money through Cash Withdrawal and Deposit Machines (CWD) located across the city.

However, this method often results in multiple deposits and transactions into their accounts, particularly during the first week  of the month.

Some TNR clients, especially those with Banco Nacional Ultramarino (BNU), have reportedly been notified of account closures, with no clear explanation given.

The Times reached out to BNU for comment, but the bank declined to provide details, citing banking confidentiality

“All information regarding BNU clients, whether individuals, companies or institutions, is subject to banking confidentiality. BNU values ​​the trust that all customers place in the Bank, therefore, as you may understand, we will not disclose any information about any of our customers’ financial relationship with BNU,” the bank stated to the Times inquiry.

The same institution added, “On the other hand, we may assert that no new policies have been implemented recently. BNU operates and has always operated in accordance with best financial practices and in strict compliance with the Regulatory Authority’s guidelines.”

In response to the Times’ query, the Monetary Authority of Macao (AMCM) emphasized that both banks and account holders must adhere to agreed terms and conditions.

It also noted that banks are entitled to terminate business relationships with customers after providing prior notice, and customers can reach out to resolve issues.

“In line with the bank’s ‘Customer Acceptance Policy’ and commercial decision, the bank reserves the right to terminate the business relationship with the customer with prior notice. In special circumstances, account holders may contact the bank to come up with a resolution,’ the AMCM added.

The AMCM clarified that banks must conduct thorough due diligence before establishing business relationships, in line with anti-money laundering and terrorism financing guidelines.

“Banks shall conduct customer due diligence procedures, which shall include but not limited to understanding customer’s background, purpose of account and transaction, etc., in accordance with the AMCM’s ‘Anti-Money Laundering and Combating the Financing of Terrorism Guideline’ as well as respective internal ‘Customer Acceptance Policy’,” the bureau said.

Some workers have explained that they prefer this method of transferring money because it offers lower fees and avoids the time-consuming process of using official remittance services.

Sources revealed that due to the rise of online remittance services, registered remittance companies are seeing a significant drop in business.

“Business is nothing like it was before bank transfers or GCash became popular. There are many days now, even at the end of the month when we’re usually busiest, that we don’t have as many transactions,” said a teller at a remittance center, who requested to remain anonymous.

Around two years ago, the AMCM issued a warning against using the mobile app YourPay for remittances from Macau to Indonesia, as it was not authorized to operate in Macau and was deemed illegal.

The AMCM stated that the app was promoted across various media platforms.

The authority clarified that it is not authorized to conduct financial activities in Macau, making it illegal.

Under Macau’s financial regulations, individuals involved in unauthorized financial operations may face significant fines.