Macau Tightens Control on Foreign Currency Exchange Gambling Transactions
Macau’s government has clarified that unlicensed foreign currency exchange (FX) linked to gambling will be treated as a criminal offence, even if it takes place outside casino grounds.
Macau skyline. Currency exchange linked to gambling to be illegal everywhere in Macau.
LISTEN TO THIS ARTICLE:According to legislator Chan Chak Mo, any FX activity related to gambling that operates as a business will fall under the scope of the bill currently under review by Macau’s Legislative Assembly. This means such transactions, whether they occur in the city’s casinos or in locations like shops or streets, could result in criminal charges.
This clarification, provided during a media briefing on Thursday, demonstrates the government’s broader approach to regulating gambling-related FX transactions. Chan Chak Mo, who leads the Legislative Assembly committee scrutinizing the bill, explained that law enforcement agencies would only need to gather “sufficient evidence” to prosecute unlicensed transactions for gambling, regardless of the location where they occur.
Gambling-Related FX Activity Outside Casinos
The clarification suggests a significant expansion of the draft “Law to Combat Gambling Crimes”, which initially focused on unlicensed FX transactions happening inside Macau’s casino resorts. Now, any FX activity linked to gambling, regardless of whether it occurs in a casino or elsewhere, could be subject to criminal prosecution if it is deemed part of an “operating business”.
In streets or shops [outside a casino or gaming resort] … if the police are able to get hold of evidence – in particular the testimony from the unlicensed currency trader, or, for instance, the ‘client’ of the illicit money exchange trader – proving that the transaction conducted is indeed for gambling, then it is a basis for the [police] investigation units to treat the case as an operation of unlawful money exchange for gambling.
Penalties for those found guilty of running unlicensed FX exchanges for gambling purposes could include up to five years of imprisonment. Additionally, offenders may face a two to 10-year ban from entering Macau’s casinos.
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Macau’s casinos predominantly deal in Hong Kong dollars, though many visitors from mainland China arrive with cash in Chinese yuan. This has led to widespread unlicensed FX activities, particularly outside casinos, where operators provide currency exchange services for gamblers.
The Macau government has consistently expressed concern that such activities extend beyond gambling-related matters and are linked to broader public security issues. Unlicensed FX transactions are often associated with serious crimes, including violence and large-scale fraud.
A document released by the Legislative Assembly described “money exchange gangs” as groups responsible for facilitating illegal FX operations. These gangs often provide large sums of cash, particularly Hong Kong dollars, to mainland gamblers who are bound for Macau. The gangs also collaborate with underground banking networks to circumvent currency transfer restrictions imposed by mainland China, further exacerbating the issue.
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