Mainland China and Macau Intensify Efforts Against Illicit Money Exchange Syndicates

Mainland China and Macau’s latest efforts against illicit foreign exchange syndicates have dismantled 263 syndicates, shut down around 100 illegal private banks, and identified funds exceeding RM800 billion (about US$110 billion). China’s Ministry of Public Security (MPS) made the announcement during a Friday press conference, underscoring the magnitude of the underground network across the region.

Cited by a local reporter, the Ministry’s Criminal Investigation Department Deputy Head Chen Shiqu reported the arrest of 846 suspects. He stated, “There is a great number of ‘money exchange gangs’ involved in the illegal trading of foreign exchange in Macau. These groups display strong regional and gang-like attributes.”

Substantial Crackdown Progress

Since October 29^th, when unlicensed foreign exchange was outlawed under Macau’s Law to Combat Crimes of Illegal Gambling, authorities in the region have progressed significantly. Reports indicate that 80 suspects, mainly from China, were in custody by November 30^th. Cash and gaming chips worth HKD9.6 million (US$1.23 million) were confiscated in the operations.

The crackdown revealed illicit money exchanges mostly happen in Macau hotel rooms, overseen by ringleaders delegating tasks to different associates; this makes them hard to corner.

Sou Sio Keong, Deputy Director of Macau’s Judicial Police, affirmed that the new law now outlines the legal approach for such matters. He also stated that security agencies in both jurisdictions will collaborate to break down illegal operations.

Neighboring Province Joins Efforts

Macau’s progress against illicit foreign exchange has inspired neighboring Guangdong province to bolster law enforcement actions. Wu Wei, deputy head of Guangdong Provincial Public Security’s criminal investigation department, announced that they were investigating over 190 cases suspected of illegal money exchange involving about RMB14.7 billion.

The Ministry of Public Security has set up a special task force in Zhuhai, a central hub in Guangdong, to handle the investigations. Its main target is primarily mainland Chinese nationals exploiting Macau’s casinos for illegal foreign exchange and related criminal activities.

The Broader Strategy

Chen Shiqu emphasized that the money tout crackdown is a part of bigger plans to eliminate illegal currency exchange and the criminal activities it helps to thrive, such as scams, fraud, and money laundering. He said, “Under the collaborative effort of the security departments of the mainland and Macau, the gangs running these activities and other affiliated crimes they commit now see an effective clampdown.”