Macau has added criminal penalties to its “Law to Combat Gaming Crimes”. Macau’s “Law to Combat Gambling Crimes” has been amended to include criminal penalties for illegal currency exchanges.
Macau’s government announced on Friday that it would amend its law to criminalize illicit exchanges of money in the casinos. Chan Chak Mo, the chairman of the Legislative Assembly said that lawmakers would vote on the legislation before the year ends.
Additions to the “Law to Combat Gambling Crimes” include prison sentences of up to 5 years. Offenders would be banned from city casinos for a period of two to ten years. Casino-goers that use unauthorised exchanges are not penalized.
Gamblers in mainland China can circumvent Beijing’s capital controls and gambling restrictions by using illegal money exchange.
In June, the government launched a crackdown on abusive behavior
Macau’s Ministry of Public Security announced in June that it would crack down on illegal money exchanges without imposing criminal penalties. According to the ministry, these operations were linked with fraud, theft, loan sharking and money laundering, along with kidnappings and murders.
The amendment, whether by coincidence or not, was made public on the 9th of August, just days after a trader’s murder. On 7 August, the victim’s body was found in his hotel room at Cotai with stab injuries to both head and neck.
Media reports in the local area claim that he was a member of a money exchange gang. This gang has been active since the start of this year. Just before the crime, he won big at a local casino, raking in about HK$2.5m (PS251,000/EUR293,500/$321,000).
In this case, two suspects were arrested: a man from mainland China and a woman from Hong Kong. They were also reportedly both involved in illicit trades.
Financial fallout
Analysts say that the tougher government stance against illegal money transfers was partially responsible for lower gaming revenues in June and Juli.
Macau’s casino stocks fell on the news that an amendment was being proposed. Bloomberg Intelligence reported that Galaxy Entertainment Group Ltd. was down up to 5.7%. Sands China Ltd’s shares dropped by up to 5.2%.
Citigroup analysts wrote: “This bad news can add uncertainty and damage the fragile investment sentiment against Macau gambling.”
The officials claim that the crime has “seriously” affected the social stability in Macau. This is the only part of China where gambling can be legally conducted. The government has pledged targeted interventions, such as increased border controls, to “disrupt the entire industry chain”.
In May, police conducted sting operations and apprehended 1,900 money changers who were not authorised. They were denied entry into Macau. Nine hundred and twenty-seven of them were reported to Gaming Inspection and Coordination Bureau and barred from Macau’s 30 plus casinos.
In the same period of five months, it was found that 30 Macanese had taken part in illegal activities.
