(illegal changers) Effects of the crackdown by the Chinese authorities on unlicensed cross-border money exchange

dez24

Macau police have uncovered 1,021 criminal cases during the second phase of the Thunder Operation, a joint effort involving authorities from Guangdong, Hong Kong, and Macau, local authorities indicated.

This phase, which lasted five weeks, concluded on 12 December.

The Thunder Operation is a collaborative initiative aimed at combating cross-border organised crime.

According to the Unitary Police Service, Macau authorities transferred 1,360 individuals implicated in these cases to judicial authorities for further processing, with 52 suspects placed under detention.

The “Thunder 2024” operation also resulted in the seizure of more than 22 million Macau patacas and approximately 16 million Hong Kong dollars in casino chips.

https://www.macaubusiness.com/macau-uncovers-over-1000-cases-in-second-phase-of-thunder-operation/

dec24 (Steve Vickers)

Essa diversificação é uma tarefa impossível?

A curto prazo. Mas, para ser justo para os grandes casinos, é como Jeckyll & Hyde. Por exemplo, se pegarmos no Las Vegas Sands — eles construíram infra-estruturas desportivas, grandes hotéis, espaços para conferências, para além do jogo. Pelo contrário, outros casinos, como o Wynn, são apenas espaços de jogo, com um hotel adjacente. Temos de olhar de maneira diferente. É difícil. As tentativas de deter a saída de capital por parte do Governo Central estão a aumentar. Vi, muito recentemente, mais ou menos 10.000 pessoas detidas por troca de dinheiro ilegal, em Macau, o que é a continuação das actividades dos anteriores operadores junkets.

Com Sam Hou Fai, quais são os riscos para as operadoras de jogo?

Têm de perceber que há algumas coisas que não vão ser toleradas. Os junkets, que cresceram em Macau por muitos anos, eram homens do crime organizado. Há pessoas que ainda vêm daí, que estão envolvidas em trocas de dinheiro ilegais, casas de penhores, lojas de joalharia e lojas de luxo, que continuam por aí, e estão todos dependentes de apenas uma coisa: a saída de capitais da China Continental. É crítico assegurar o controlo dos capitais chineses. Um dia — esta é a minha previsão e posso estar errado — mas acredito que, um dia, o Governo Central vai simplesmente dizer que o jogo é ok, podem continuar com o jogo, mas tudo precisa de ser feito em RMB, não em dólares de Hong Kong ou dólares norte-americanos. Esse não vai ser um bom dia para os casinos.

 

O que é que isso irá significar?

Significa que posso ir de ferry até Macau esta tarde em 45 minutos, com um bolso cheio de dólares de Hong Kong, e apenas jogar em dólares de Hong Kong, ou posso vir da China Continental e trocar o meu dinheiro por dólares de Hong Kong. Macau continua a ser um lugar fácil para o dinheiro sair da China Continental. Eventualmente, o Governo ficará cansado disso, já que a economia não está em boas condições, há crescente ênfase num mais apertado controlo estatal e, assim, há menos flexibilidade. As coisas estão a mudar

https://pontofinal-macau.com/2024/12/17/sam-hou-fai-ira-promover-a-diversificacao-combatendo-o-dinheiro-ilegal/

dec24

China’s Ministry of Public Security has identified “capital flow” of over CNY80 billion (US$11 billion) from what it termed “syndicates” associated with unauthorised foreign exchange (FX) that has taken place in or around Macau casinos, as well as other crimes on the mainland side of the border. No time frame was mentioned for the figure.

Chen Shiqu, deputy head of the ministry’s criminal investigation department, said in a Friday media briefing in Beijing, that the authorities had “dismantled” 263 such syndicates located across China.

They had also disrupted what the ministry said were associated crimes, including the operation of underground banks, organisation of illegal border crossings for mainland China residents, scams, and wrongful detainment of gamblers.

Mr Chen said 846 “criminal suspects” have been detaind by the Chinese police so far in relation to such matters.

He and several other public security officials outlined at the Friday briefing those efforts, and collaboration with the Macau police, since the authorities on both sides of the border flagged in early July they were stepping up activity against unlicensed foreign exchange in Macau.

In Guangdong, the mainland province next to Macau, the authorities had investigated an aggregate of 192 cases of suspected illicit money exchange trading and other associated crimes. The amount of money involved was estimated at CNY14.7 billion, said at Friday’s briefing Wu Wei, deputy head of Guangdong Provincial Public Security’s criminal investigation department.

https://www.ggrasia.com/gangs-tied-to-macau-fx-channelled-us11bln-beijing/

+

Almost 850 people have been detained to date in the ongoing operation targeting unauthorised currency exchange activities happening at Macao’s casinos, Asia Gaming Brief (AGB) reports. 

Macao and mainland authorities have cooperated in the crackdown, which focuses on syndicates allegedly involved in a raft of crimes besides illicit money exchange, including operating underground banks, organising illegal border crossings for mainland residents, scams, and the wrongful detainment of gamblers.

According to Chen Shiqu, deputy head of the Criminal Investigation Department at the mainland’s Ministry of Public Security, 263 of these syndicates have been dismantled to date, and 846 suspects have been arrested. 

Addressing the media in Beijing on Friday, Chen said that Macao police had deported 581 mainland Chinese suspected of involvement in illegal money exchanges. A special task force has also been established in the neighbouring mainland city of Zhuhai to address criminal activities related to illegal currency exchange in Macao. He also praised the effectiveness of the Macao-mainland collaboration, AGB said, noting the SAR’s recent toughening up on FX activities around casinos. 

https://macaonews.org/news/business/macau-casinos-illegal-money-exchange-arrests-macao/

nov24

As autoridades policiais interceptaram entre Janeiro e Setembro 2.835 burlões de troca de dinheiro, dos quais 2.635 eram não residentes a quem foram aplicadas medidas de interdição de entrada no território. A Direcção de Inspecção e Coordenação de Jogos adoptou medida de proibição de entrada nos casinos contra 1.677 envolvidos.

Os principais crimes derivados da actividade de câmbio ilegal continuam a ser as burlas, com um registo de 527 casos até Setembro. No entanto, os esquemas de burla de notas falsas registaram uma “descida significativa” desde o segundo trimestre deste ano.

Wong Sio Chak adiantou que, desde a entrada em vigor da nova lei, a polícia deteve 55 suspeitos em 42 casos relevantes, considerando que as actividades ilícitas envolvendo câmbio ilegal tiveram uma “redução notável. “A criminalização da troca ilegal de dinheiro irá reduzir a margem de actuação desses ‘burlões de troca de dinheiro’, o que contribuirá para garantir a segurança do ambiente do jogo de Macau”, salientou.

Segundo a Polícia Judiciária, desde a criminalização da troca ilegal de dinheiro usado para apostas, foram apreendidas 7,11 milhões de patacas e fichas avaliadas em 1,95 milhões de patacas.

https://pontofinal-macau.com/2024/11/29/criminalidade-subiu-12-ate-ao-terceiro-trimestre-devido-ao-aumento-de-burlas/

nov24

Industry experts have told Inside Asian Gaming that the number of money exchange gang members operating inside Macau’s casinos and integrated resorts has been reduced by as much as 90% since the law on illegal gambling offences came into effect last month.

Their comments come with Macau and mainland police having announced a series of arrests in recent weeks, including a joint operation that saw 13 people arrested for engaging in money exchange activities in the vicinity of a number of casinos on Tuesday.

Macau’s Illegal Gambling Law came into effect on 29 October, imposing up to five years’ imprisonment on anyone who engages in illegal money-change activities for gambling purposes. On the day the law came into effect, the Judiciary Police arrested two members of a money-exchange gang for criminal offenses, with many other arrests in the month since..

Speaking with IAG, Macau junket industry representative U Io Hung said the number of money exchange gangs operating in Macau’s casinos and resorts had decreased significantly.

“I estimate that there has been a reduction of more than 90%, and now the security guards of casinos will immediately notify the police when they find money changers,” he explained.

“The number of money exchange gangs has decreased significantly since the law came into effect, and the number working in casinos and resorts has decreased a lot.”

They have not been eradicated completely, however.

“Although money changers are now regulated by criminal laws, they will exist as long as there is a demand in the market,” U explained. “The existing rules for legal money changers in casinos require the use of cash, but 90% of the players are mainlanders who are accustomed to using electronic payment, and money changers provide a channel for electronic payment, so there is room for them to survive”.

https://asgam.com/2024/11/28/experts-claim-90-of-macau-money-exchange-gangs-eradicated-since-passing-of-illegal-gaming-law/

nov24

A Polícia Judiciária e seis concessionárias de jogo tiveram na semana passada uma reunião onde foram abordadas “medidas concretas” para prevenir e combater o crime de exploração de câmbio ilícito para jogo. Ambas as partes consideram necessário reforçar a troca de informação sobre o câmbio ilegal e melhorar a cooperação triliteral com a Direcção de Inspecção e Coordenação de Jogos.

https://pontofinal-macau.com/2024/11/07/autoridades-reunem-se-com-concessionarias-no-ambito-do-combate-ao-cambio-ilegal-para-jogo/

nov24

A 40-year-old unemployed male suspect was arrested due to suspicion of operating illegal currency exchange activities, by the Judiciary Police (PJ).

According to the PJ, the suspect was found speaking with a witness in a private room at the venue.

The suspect presented a QR code on his mobile phone, and after the witness confirmed the payment, the suspect handed over HKD21,000 in gaming chips.

Further investigation revealed the suspect was profiting HKD80 for every HKD10,000 exchanged, indicating an illegal currency exchange operation.

https://macaudailytimes.com.mo/first-arrests-under-new-illegal-gaming-law.html

out24

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

That is according to Thursday commentary from veteran legislator Chan Chak Mo (pictured), with the latest explanation of the local government’s intention regarding a bill with provisions to criminalise gambling-related unlicensed exchange. Mr Chan heads a Macau Legislative Assembly committee tasked with scrutinising the bill.

The planned legal change can cover transactions for gaming purposes done outside the city’s casino resort complexes, as long as law enforcement bodies were able to gather “sufficient evidence”. He noted at a media briefing on Thursday, that the bill was likely to have its second and final reading at a plenary session of the assembly “within this month”.

The criminalisation aim of the authorities had been announced in August, under article 11 or the draft ‘Law to Combat Gambling Crimes’. At that time there had been mention specifically of unauthorised exchange in gaming or non-gaming areas of casinos.

Under the updated commentary, any gambling-related foreign exchange activity that could be characterised as part of an “operating business”, could fall under the scope of the provisions.

https://www.ggrasia.com/irregular-macau-gaming-fx-to-be-criminalised-beyond-casinos/

ago24

The government’s recent crackdown on unauthorised money exchanges has not led to cutbacks in casinos’ premium mass segment, Inside Asia Gaming (IAG) reports – citing a note from Citibank analysts.

Indeed, analysts George Choi and Ryan Cheung noted that both year-on-year and month-on-month premium mass wagers appeared to be surging during their recent inspection of the SAR’s integrated resorts. The pair said they saw 25 so-called ‘whales’ while in the city, betting as much as HK$600,000 (US$77,000) per hand. Whales are defined as players betting HK$100,000 per hand or more.

“The fact that this happens after the Macao government’s decision to criminalise illegal money exchanges within casino premises means that most players, via legitimate channels, are still able to get their funds to the Macao casinos,” Choi and Cheung said.

https://macaonews.org/news/business/macau-casinos-premium-mass-money-exchange-macao-citibank/

ago24

According to Carlos Siu Lam, an Associate Professor at the Macau Polytechnic University Center for Gaming and Tourism Studies, these changes are part of a larger effort by mainland China to crack down on illegal financial activities.

“With the increased number of cases related to illicit money exchanges—such as unauthorized credit services, cross-border money remittances, and group fights among casino patrons—it’s clear that such acts are not vastly different from those of junket operations in the past. There is a pressing need to suppress these activities”, Siu told AGB.

https://agbrief.com/intel/deep-dive/20/08/2024/macau-legislative-amendments-to-target-illicit-money-exchange-operations-follow-mainland-china-directives/

agot24

Melco Resorts Chairman and CEO Lawrence Ho has played down the impact a recent crackdown by authorities on Macau’s illegal money exchange activities has had on the gaming market, describing seasonality and the Euro 24 football championships as more meaningful contributors to recent softness.

He also noted that gaming volumes have shown steady improvement since mid-July, with the impending completion of upgrade works at both City of Dreams Macau and Studio City expected to further support growth for the remainder of 2024.

Ho was asked about the impact of the money exchange crackdown – first announced by mainland authorities in May – during Melco’s 2Q24 earnings call overnight. The issue again hit the news late last week when Macau’s Legislative Assembly unveiled plans to criminalize money exchange gangs under the “Illegal Gaming Offences”, which is punishable by up to five years of imprisonment.

“I think the money changer issue, it’s not new,” Ho said. “It’s been talked about for over a year now so it’s not a surprise to us.

“Of course, it has a bit of an impact in terms of liquidity to players, but I think the bigger issue in terms of the softness in June – and we saw growth in July already and August is off to a very good start – it’s more related to the Euro champs, which lasted from mid-June to mid-July.

“Also, this year the Chinese school holiday started two weeks later, so it didn’t really start until mid-July. What happens there is parents want to stay home and make sure that the kids done with final exams before they travel.

https://www.asgam.com/index.php/2024/08/14/lawrence-ho-seasonality-more-than-money-exchange-crackdown-behind-recent-softness-in-macau-gaming-market/

agot24

A 40-year-old mainland Chinese man was murdered in a hotel room at Wynn Palace on Wednesday in a case police say is related to Macau’s money exchange gangs.

According to information provided to the media on Thursday afternoon, the murder took place at around 4pm on Wednesday with the suspect alleged to have robbed the victim of more than HK$2.5 million (US$321,000). The two men were known to each and other and both members of a gang.

The victim was discovered after a family member who was unable to reach him contacted hotel security, with guards finding the body in the bathroom of his hotel room.

After receiving a report, police launched an investigation and found that the victim had a 20-centimeter-long knife wound on his neck, with traces of an attempted cleanup at the scene of the crime. A mainland man and Hong Kong woman were arrested a short time later.

https://www.asgam.com/index.php/2024/08/08/money-exchange-gang-member-killed-and-robbed-of-hk2-5-million-in-hotel-room-at-macaus-wynn-palace/

0agot24

The Macau government is to criminalise the unlicensed changing of money within a casino setting for the purposes of gambling, including such exchange activity in non-gaming areas of such premises. There will be a penalty of up to five years’ imprisonment for those found guilty.

The provision has been added to the latest draft of the ‘Law to Combat Gambling Crimes’. Previously, the city’s authorities had indicated they were not minded to add such a step to the bill.

The information on the change of mind was given on Friday at the city’s Legislative Assembly by Chan Chak Mo (pictured, right), a veteran legislator who heads a committee tasked with scrutinising the bill. He was relaying information passed to the committee, by the city’s government.

He was speaking to the media following a closed-doors meeting of the committee.

Mr Chan mentioned that those found guilty of such an offence could also face a Macau casino entry ban of “two to 10 years” in length.

https://www.ggrasia.com/macau-to-criminalise-unlicensed-money-exchange-in-casinos/

jul24

The situation in Macau appears largely unchanged over the past week, which is a stable development following a disappointing start to the month. However, ongoing regulatory scrutiny on currency exchanges and broader macroeconomic concerns in China continue to cast a shadow, the memo notes

Industry sources report that Macau’s gross gaming revenue (GGR) for the week ending July 21st averaged MOP635 million ($79 million) per day. For the month-to-date, Mass GGR increased by 1-2 percent, while VIP GGR remained flat month-on-month, with the VIP win rate ranging between 3.3-3.6 percent.

https://agbrief.com/news/macau/23/07/2024/macaus-macro-conditions-challenge-gaming-performance-jefferies/

juk24

Investors’ concern about a possible crackdown on illegal cross-border fund flows and its potential impact on Macau’s gross gaming revenue (GGR) is likely ‘overdone’, brokerage firm Citigroup has said.

In a recent update, analysts George Choi and Ryan Cheung noted that gaming demand in Macau is showing improving trends in July, despite the action taken to curb illegal money exchange activities that began in June.

“We continue to believe that most players in Macau have their own legitimate ways to get their funds over to Macau, sufficient for them to bet as much as HK$1 million/hand,” the analysts wrote.

Earlier in June, China’s Ministry of Public Security urged security forces, not only in Macau but also on the Chinese mainland, to strengthen cooperation in clamping down on illegal money exchange in Macau.

https://www.macaubusiness.com/macau-gaming-still-resilient-amid-illegal-money-exchange-crackdown-citi/

jul24

Some mainland China players may have put off visiting Macau in June amid publicity about a crackdown by the Chinese authorities on unlicensed cross-border money exchange, says a Monday note from Seaport Global Securities LLC.

“We believe this crackdown round is having some negative impact on money flows into Macau and certain individuals have postponed their visits to Macau,” stated analyst Vitaly Umansky.

The authorities’ activity “will likely continue to be somewhat of a headwind to GGR [gross gaming revenue] over the next month or two,” he wrote.

But Mr Umansky added: “We expect the crackdown to soften and liquidity in Macau to be not significantly impacted in the medium term.”

https://www.ggrasia.com/some-players-avoiding-macau-amid-cash-crackdown-analyst/

jul24

Junho é um mês tradicionalmente mais fraco no sector do jogo, mas o anúncio das autoridades chinesas relativo à repressão sobre o câmbio ilegal de dinheiro poderá ter travado a vinda de visitantes do Continente chinês ao território, refere a Seaport Global Securities. Além disso, e com o Euro 2024 a decorrer, as perspectivas em relação às receitas do jogo para o próximo mês também continuam abaixo daquilo que seria normal, segundo a consultora

https://jtm.com.mo/local/repressao-aos-cambistas-ilegais-afecta-receitas-dos-casinos/

 jul24

The Macau authorities have intercepted a total of 1,942 unauthorised currency changers in the first five months of 2024, subsequently barring them from entering the city. That is according to information disclosed by Judiciary Police Director ,Sit Chong Meng, in a speech on Friday.

In conjunction with these efforts, the local casino regulator, the Gaming Inspection and Coordination Bureau (DICJ), has banned 927 individuals from entering casinos due to their suspected involvement in money-changing activities. Mr Sit said they were significant steps taken to curb these illicit operations.

He also mentioned that 30 Macao ID holders caught allegedly participating in unauthorised currency exchange activities had been referred to the Monetary Authority of Macao, the city’s financial regulator, for further proceedings.

https://www.ggrasia.com/900-plus-forex-touts-barred-from-macau-casinos-police/

ju24

Some mainland China players may have put off visiting Macau in June amid publicity about a crackdown by the Chinese authorities on unlicensed cross-border money exchange, says a Monday note from Seaport Global Securities LLC.

“We believe this crackdown round is having some negative impact on money flows into Macau and certain individuals have postponed their visits to Macau,” stated analyst Vitaly Umansky.

The authorities’ activity “will likely continue to be somewhat of a headwind to GGR [gross gaming revenue] over the next month or two,” he wrote.

But Mr Umansky added: “We expect the crackdown to soften and liquidity in Macau to be not significantly impacted in the medium term.”

June GGR might also have been negatively affected by the Euro 2024 international soccer tournament in Germany running from June 14 to July 14. Macau in June typically had modest play volumes anyway, said Mr Umansky.

https://www.ggrasia.com/some-players-avoiding-macau-amid-cash-crackdown-analyst/