According to the AMCM's latest industry guidance, Macau banks are prohibited from conducting business with overseas gaming operators.

Macau's financial regulator, the Monetary Authority of Macao (AMCM), has issued "updated industry guidance on Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) controls" tailored to the gaming sector, as reported by Asia Gaming Brief.

Changes to Prohibition:

Macau banks are prohibited from forming any sort of commercial ties with overseas gambling enterprises, as per the most recent revised guideline given by the Financial Intelligence Office. Affiliated businesses and junket promoters of overseas gaming corporations are also barred from facilitating the transfer of cash for gaming operations outside of Macau. However, the AMCM's AML/CFT Guideline, which went into effect in August 2019, is supplemented by this advice.

Professor Ryan Ho Hong Wai of Macao Polytechnic University's Centre for Gaming and Tourism Studies told the aforementioned Asia Gaming Brief, "These updates are in response to the new gaming law, as junkets are no longer allowed to deposit funds for their clients." Referring back to this earlier comment, however, the whole guideline was developed "in terms of renewing the entire guidance."

To further elaborate on this topic, AMCM adds, "in view of the significance of cash-intensive gaming activity and the potential risks associated with gaming activity, as well as to supplement the AMCM AML/CFT Guideline and the Industry Guidance on AML/CFT Controls, this Authority would like to express our expectations of additional enhanced controls by banks over other customers with transactions that could be related to gaming activities."

Will clients welcome revised recommendations?

AMCM adds, "Banks should establish clear policies and procedures to assess the acceptability of customers connected to gaming activities." This refers to the clients' approval of the new advice. A "robust AML/CFT framework and employ competent, well-trained staff to manage and mitigate the specific and heightened risks inherent in these activities" is required for banks to work with gaming operators to facilitate the transfer of funds for gaming activities conducted in Macau.

When the purpose of the account is to facilitate the transfer of funds for Macau's gaming operations, they should additionally verify that users have obtained validation from the Gaming Inspection and Coordination Bureau.

Client verification in the gaming industry:

Macau banks are required, among other things, to inquire further into their customers' intended use of their accounts in order to confirm that the accounts are being used only for the purpose of organising the flow of payments between sponsors and Macau casinos. However, it is also required to provide further details about the specific circumstances surrounding completed and completed transactions, such as the receipt of payments from sponsors for Macau's gaming or the return of casino markers from international casino jurisdictions.

The aforementioned financial institutions are also obligated to conduct enhanced monitoring of business ties by accumulating additional documentary proof for each executed transaction.