Macau Police Shut Down Illegal Money Exchange Moving Millions Despite New Gambling Law

Macau’s Judiciary Police say they have dismantled an unlicensed money exchange operation that continued to run despite the practice being outlawed last year. The Law to Combat Crimes of Illegal Gambling, enacted in October 2024 by the Macau Special Administrative Region Government, made unauthorized currency exchanges illegal. Prior to this amendment, such exchanges were a favored method for mainland Chinese gamblers to skirt Macau’s entry rules, which limit travelers to carrying no more than the equivalent of about US$5,000 in cash.

Because Macau casinos operate as cash businesses, even mass-market players frequently relied on these services. The underground exchanges accepted bank transfers from customers and handed them stacks of cash upon arrival in the enclave, charging hefty fees for the convenience. According to police, the recently busted operation helped move at least HK$300 million (US$38.2 million) and generated more than US$1.2 million in profits for its ringleaders.

The context for such schemes lies in China’s tight financial controls. As a communist country, high earners are required to give up nearly half of their monthly income to the People’s Republic. To further prevent residents from moving capital out of the country and beyond state oversight, authorities impose strict limits, including the rule that individuals may not enter Macau or Hong Kong with more than $5,000 in cash. This restriction forces gamblers to use licensed, government-regulated exchanges to make bank transfers.

When the 2024 ban on unauthorized exchanges was introduced, some feared it might hurt Macau’s casino industry. Instead, the six major gaming operators have thrived, successfully adapting to multiple regulatory shifts. Among these changes was the end of junket operations—VIP travel organizers that for years worked closely with casinos to bring in high-stakes mainland players. Junkets offered luxury packages including private jet travel and five-star accommodations, often paired with gaming credit nearly matching the trip’s cost.

With junkets moving to markets with less risk of criminal prosecution, Macau has broadened its appeal to a wider range of visitors. Significant investment in diversified attractions has paid off, with visitor numbers climbing back toward pre-pandemic levels. Gross gaming revenue for the first seven months of 2025 is up 6.5%, with casinos collectively earning more than $1 billion more than in the same period of 2024. Analysts believe that without junkets taking a cut, the resorts are now in a stronger financial position.

The 2024 Law to Combat Crimes of Illegal Gambling also introduced harsher penalties for offenders. Anyone caught running an unauthorized money exchange or assisting in transferring funds into Macau without a license now faces up to five years in prison. In the most recent case, police arrested four men aged between 30 and 32. The Public Prosecution Office is set to handle the charges, which include allegations of operating a criminal syndicate and conducting illegal currency exchange for gambling purposes.

By fLEXI tEAM