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Macau acts to rein in money laundering

Freda Wan

Macau's first anti-money-laundering draft bill passed its first test in the legislative assembly yesterday.

The draft was approved in principle in the new Macau Legislative Council that was elected on September 25.

Secretary for Administration and Justice Florinda da Rosa Silva Chan denied the government had been pressed to push the bill through Legco by US allegations in September of Macau banks' involvement in North Korean money-laundering activities.

'We've been drafting this piece of legislation since 2003,' she told legislators. 'The aim of this law is partly to bring Macau's legal framework in line with the international agreements we have signed [against money laundering].'

The draft bill - details of which will be discussed in Legco subcommittees - states money-laundering activities could result in imprisonment for three years or more.

It regulates a range of institutions including casinos, banks, insurance companies, currency exchanges, cash transfer companies, jewellery shops, property developers and agents, the business registry's government officials, auditors, accountants and labour services companies.

Legislator Chan Chak-mo, a former right-hand man to gaming tycoon Stanley Ho Hung-sun, is concerned the new restrictions could diminish casino revenues.

The bill requires institutions to meet several obligations to prevent money-laundering. Businesses or individuals must find out the identity of their clients. They must know the nature of their clients' business dealings. If their clients are unable to provide such information, the institutions or individuals are obliged to refuse to do business with them.

If institutions or individuals see their clients conducting money-laundering activities, they must report the matter and co-operate with relevant government departments.

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