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U.S. Department of State Country Reports on Terrorism 2006 - Macau

The Macau Special Administrative Region Government (MSARG) passed both anti-money laundering and counterterrorism finance legislation. Still, Macau's lack of judicial and law enforcement experience in combating financial crimes, combined with its expanding casino industry and history as a base for organized crime, provided a potential site for money laundering and terrorist financing activities.

On March 23, the Macau government passed new counterterrorism legislation aimed at strengthening counterterrorist financing measures. The law made it illegal to conceal or handle finances on behalf of terrorist organizations. Individuals were liable even if they were not members of designated terrorist organizations themselves. The legislation also allowed, in certain cases, prosecution of persons who committed terrorist acts outside of Macau and mandated stiffer penalties. On the same day, the government also passed a money laundering bill that strengthened its oversight of financial institutions. The new law imposed requirements for the mandatory identification and registration of financial institution shareholders, customer identification, and external audits that includes reviews of compliance with anti-money laundering statutes.

The Macau government has the authority to freeze terrorist assets, although a judicial order is required. Macau financial authorities directed the institutions they supervise to conduct searches for terrorist assets using the UN 1267 Sanctions Committee consolidated list and the list of Specially Designated Global Terrorists designated by the United States pursuant to E.O. 13224. Bank examiners reviewed customer profiles, large cash transaction records, and suspicious bank reports. They also interviewed frontline staff, senior management and money laundering compliance officers.

The Government of Macau continued to exchange information with the Hong Kong Special Administrative Region and counterparts in mainland China. Additionally, Macau continued to cooperate internationally in counterterrorism efforts, through INTERPOL and other security-focused organizations within the Asia Pacific Region.

Topics: Terrorism,