GGRAsia – Irregular Macau gaming FX are criminalized outside casinos

Unlicensed foreign exchange (FX) exchange for gambling in Macau will be considered a criminal matter if authorities there deem it to be done as a trading activity, regardless of whether it takes place in or outside casinos.

This is evident from Thursday’s comments from veteran lawmaker Chan Chak Mo (pictured), providing the latest explanation of the local government’s intention regarding a bill with provisions to criminalize unlicensed gambling-related exchanges. Mr Chan heads a committee of the Macau Legislative Assembly charged with examining the bill.

The planned change in the law could cover transactions for gambling purposes that take place outside the city’s casino resort complexes, as long as law enforcement agencies are able to gather “sufficient evidence.” He noted during a media briefing on Thursday that the bill will likely go for its second and final reading at a plenary session of the assembly “within this month.”

The criminalization goal of the authorities was announced in Augustpursuant to Article 11 of the draft ‘Act on Combating Gambling Crimes’. At the time, illicit exchanges were specifically occurring in gaming or non-gaming areas of casinos.

According to the updated commentary, any gambling-related foreign exchange activity that can be characterized as part of an “operating business” could fall within the scope of the provisions.

Mr Chan stated in his speech on Thursday: “On streets or shops (outside a casino or gambling resort)… if the police can obtain evidence – in particular the testimony of the illegal currency dealer, or for example the ‘client of the illegal money exchange dealer – proves that the transaction carried out is indeed intended for gambling, then this is a basis for the (police) investigation units to treat the case as an operation of unlawful money exchange for gambling.”

Such activities could result in a prison sentence of up to five years for those found guilty, according to the bill. Such people could also face a ban from entering casinos in Macau for “two to ten years”.

Casino betting in Macau is usually denominated in Hong Kong dollars. Many of the gambling venues’ customers come from mainland China and their assets can typically be denominated in the Chinese currency, the yuan.

Public safety issue

The Macau government has often characterized unauthorized currency exchange as a public security problem, saying it can be linked to serious crimes such as violent crimes or major fraud.

In an opinion paper published by the Legislative Assembly and covering key discussions on the bill, the Macau government explained how it defined so-called ‘money exchange gangs’.

The op-ed stated: “After some investigation, the bill’s author (the Macau government) has officially classified ‘money exchange gangs’ as groups that unlawfully provide a large amount of money for exchange with individuals or organizations, and they often collaborate with underground banks. .”

It added: “To circumvent mainland (China) restrictions on the inflow and outflow of foreign currency and cash, or overseas bank card withdrawal limits, ‘money exchange gangs’ have traded large amounts of Hong Kong dollars in cash for the mainland. gamblers heading to Macau.”

The document also quotes the Macau government as saying: “The bill petitioner (the Macau government) noted that ‘money exchange gangs’ have caused unrest in Macau society, and their various unlawful activities have affected Macau’s security status, and also adversely affect the healthy and orderly development of the gaming industry.”

Another important aspect of the draft anti-gambling crime law concerns the powers of the Macao Police to investigate and investigate alleged gambling crimes.

For example, in situations of suspected illegal operation of fortune games, mutual betting or online gambling, security authorities will have the specific right to search suspects’ homes at night and in the early morning hours from ‘9 p.m. to 7 a.m.’.

To tackle the “hidden” nature of gambling crimes, the government has also proposed allowing “undercover” investigations by police to investigate such cases, Mr Chan also said. The bill proposes a “protection mechanism” for informants assisting police in investigations.