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.
In Zhuhai, the Guangdong city next door to Macau, the ministry had set up a task force specialised in handling criminal issues relating to Macau’s illicit money exchange traders, many of them believed to be from the mainland, according to Friday’s update.
The Macau police had sent back to Zhuhai, 581 mainlanders that had allegedly been involved in illicit currency exchange, Mr Chen said at the briefing.
Mr Chen also mentioned: “Under the collaborative effort of the security departments of the mainland and Macau – especially considering the fact that illicit money exchange activities have already been criminalised via Macau’s legislation – the gangs running these activities and other affiliated crimes they commit now see an effective clampdown.”
The official however also noted challenges remained, given the “hidden” nature of their business, with many such currency exchanges taking place behind closed doors in Macau hotel rooms; as were other linked crimes such as robberies, scams, illegal detainment of gamblers, blackmail and money laundering.
The Chinese security authorities would continue to investigate, focusing on tackling “ringleaders” and any underground banking system that funds their trade, said Mr Chen.
Macau Judiciary Police also held a Friday briefing that outlined their efforts in taking down illicit money exchange businesses.
Sou Sio Keong, deputy director of the Judiciary Police, said the city’s law enforcement authorities had arrested 84 individuals – most of them from the mainland – for alleged involvement in unlicensed foreign exchange for gambling, and seized from them cash and gaming chips that worth HKD9.6 million (US$1.23 million). That was up to November 30, and starting from when such trade was criminalised in Macau with effect from as October 29.
The crime is a newly-created offence under Macau’s Law to Combat Crimes of Illegal Gambling.
