Hong Kong ATM network sees surge in China UnionPay withdrawals following facial recognition move by Macau

The development comes as Macau seeks to crack down on capital outflows from mainland China through facial recognition at ATMs

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There has been a sharp rise in cash withdrawals in Hong Kong using China UnionPay bank cards. Photo: David Wong

Published: 7:05am, 21 Aug 2017Updated: 8:54am, 21 Aug 2017

Hong Kong’s ATM network has been hit with a surge in withdrawals by customers using China UnionPay bank cards in the wake of facial recognition technology being introduced at cash dispensing machines in Macau.

Monetary chiefs in Hong Kong have declined to deny or confirm information obtained by the South China Morning Post that ATMs have seen a “staggering’’ rise in withdrawals since the casino hub introduced the recognition technology in May as part of a bid to stem illegal capital flight from mainland China.

The rise in ATM withdrawals in terms of volume and number has been staggering. The taps are gushing

A knowledgeable source

“The rise in ATM withdrawals in terms of volume and number has been staggering. The taps are gushing,” said a source with knowledge of the situation.

“It seems quite clear that as the introduction of ATM facial recognition technology in Macau has put the squeeze on cash dispensing withdrawals in Macau, the pattern of withdrawals has followed the path of least resistance – and that is to Hong Kong,” the source added.

The development follows a move by the Hong Kong Monetary Authority to instruct local banks to submit data on cash withdrawals by UnionPay cards throughout the city’s ATM network as the regulator cracks down on unauthorised capital outflow from the mainland.

A facial recognition device on an ATM in Macau. Photo: Bloomberg

Media reports – not denied by the authority – said the instruction meant commercial banks were required to submit data and documentation regarding the volume and timing of withdrawals by UnionPay cards for the first six months of this year.

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