The central government has ordered a crackdown on illicit money exchange businesses in Macao, according to multiple sources that cited a directive from the Ministry of Public Security.
The move is part of a broader plan to crackdown on underground gambling, money laundering, loan sharking and scams that have led to “fights, fraud, thefts, illegal immigration and other crimes,” according to one translation of a post on the ministry’s website.
Officials say the activities have “seriously affected social stability” in Macao and say they intend to break up the “entire industry chain” on a national level.
Border checks will be strengthened and cooperation with Macao police increased as part of the crackdown, the reports said.
[See more: Most gamblers intend to maintain or increase their Macao spends, survey says]
Peng Peng, the head of a think tank affiliated with Guangdong provincial government, told the South China Morning Post that “While the illegal money exchange business in Macao might have stemmed from the gambling industry, it has been expanded to serve the function of underground banks and is a very common channel for corruption and illegal money outflow.”
He added: “In order to protect China’s financial security, tackle the problem of corruption and prevent the illegal outflow of money, the government sees a need to hinder the illegal industry of money exchange.”
Crime in Macao witnessed an 18 percent year-on-year jump during the first quarter of 2024, according to official figures. The Public Security Police say the spike is mostly due to a sharp rise in the number of scam cases and fraud.
