Macau Casinos Report Nearly 4,000 Suspicious Transaction Filings in 2024

Macau’s casinos submitted 3,837 Suspicious Transaction Reports (STRs) last year, reflecting a 12% increase compared to the previous year, according to a report released on Wednesday by the city’s Financial Intelligence Office. The agency, responsible for combating money laundering and terrorist financing, tracks financial activities, including cross-border cash flow and transactions involving negotiable instruments such as checks, money orders, and bonds.

Under current regulations, casinos must file large-sum transaction reports whenever an individual transacts MOP500,000 (approximately US$62,325) or more within 24 hours. In addition, STRs are required whenever casino staff identify potentially suspicious behavior related to money laundering or terrorism financing, regardless of the transaction amount. Cage workers, who receive specific training in identifying suspicious activity, are prohibited from informing customers that their transactions have triggered an STR filing.

The rise in STR filings aligns with Macau’s intensified oversight of its gaming sector, a shift that began during the COVID-19 pandemic. President Xi Jinping of the People’s Republic of China called for stricter monitoring of junket operations, long associated with Macau’s casino industry. Junkets, which facilitated luxury travel and gambling for mainland China’s wealthy elite, often involved substantial financial transactions, including packages exceeding $100,000. These packages typically included high-end travel, accommodations, and gaming chips equivalent to the package’s cost, used in private high-stakes rooms.

However, the junket industry faced significant scrutiny as Xi raised concerns over the vast flow of capital from mainland China into Macau, which he viewed as a potential national security threat. The crackdown culminated in the high-profile prosecution of Alvin Chau, a prominent figure in the junket business. Chau was sentenced to 18 years in prison in 2023, leading to the collapse of nearly all other junket operations in Macau.

Despite the disappearance of junkets, the casino sector remains under strict supervision by local authorities, including the Gaming Inspection and Coordination Bureau. This heightened regulatory environment likely contributed to the 406 additional STR filings submitted in 2024 compared to 2023.

Casinos were responsible for 73.2% of the 5,245 STRs reported to the Financial Intelligence Office last year, with banks and insurance companies accounting for 20.9% (1,097 filings). The remaining 5.9% came from other institutions.

Industry representatives indicated that many STRs originated from gamblers purchasing gaming chips but engaging in minimal or no gambling, a behavior commonly associated with attempts to launder illicit funds. Another frequent trigger involved individuals redeeming gaming chips that had been initially purchased by someone else, suggesting potential financial exchanges between parties.

The increased scrutiny underscores Macau’s commitment to combating financial crimes within its gaming industry, an essential pillar of the region’s economy.

By fLEXI tEAM