Mainland China and Macau have joined forces to crack down on illegal foreign exchange operations and related crimes, dismantling 263 syndicates and identifying illicit funds exceeding RMB800 billion (approximately US$110 billion). The Ministry of Public Security announced these results during a press briefing, highlighting the extensive network of underground banks and unauthorized money exchangers operating across the region.
Chen Shiqu, deputy head of the ministry’s criminal investigation department, cited by Macau Business, reported that 846 individuals have been detained in connection with these syndicates. He stated: “There is a great number of ‘money exchange gangs’ involved in the illegal trading of foreign exchange in Macau. These groups display strong regional and gang-like attributes.”
Chen also noted the interconnected nature of these operations, which frequently tie illegal currency exchanges to other crimes such as fraud, robbery, extortion, and smuggling, all posing threats to Macau’s social stability.
Illegal Money Exchange in Macau
The crackdown revealed that unlicensed money exchanges have often been conducted behind closed doors, particularly in Macau hotel rooms. Chen explained that many of these operations are orchestrated remotely, with ringleaders delegating tasks to associates spread across various locations, making them difficult to detect.
Since October 29, when unlicensed money exchange was criminalized under Macau’s Law to Combat Crimes of Illegal Gambling, authorities in Macau have made substantial progress. Deputy director of Macau’s Judiciary Police, Sou Sio Keong, shared that 84 suspects—primarily from mainland China—were arrested by November 30. Confiscated assets included cash and gaming chips valued at HKD9.6 million (US$1.23 million).
Sou also affirmed that this new law provides a legal framework to strengthen law enforcement actions, stating that Macau’s authorities will continue collaborating with mainland security agencies to dismantle these operations.
Guangdong and Zhuhai Join Forces
Efforts to combat illicit foreign exchange have extended into Guangdong province, adjacent to Macau. According to Wu Wei, deputy head of Guangdong Provincial Public Security’s criminal investigation department, authorities there have investigated 192 cases tied to illegal money exchange and associated crimes, involving a total of RMB14.7 billion.
Zhuhai, a key city in Guangdong bordering Macau, has become a central hub for addressing these crimes. The Ministry of Public Security established a specialized task force in Zhuhai to tackle these illegal operations, which often involve mainlanders exploiting Macau’s casinos for foreign exchange and related activities.
Macau authorities have repatriated 581 individuals to Zhuhai for alleged involvement in these schemes, further underscoring the close collaboration between the two regions.
Cross-Border Coordination Strengthened
Chen Shiqu highlighted that this crackdown is part of a broader strategy to combat not only illegal currency exchange but also the criminal activities it facilitates, including money laundering and scams. He added: “Under the collaborative effort of the security departments of the mainland and Macau… the gangs running these activities and other affiliated crimes they commit now see an effective clampdown.”
Despite these successes, challenges persist. The hidden and distributed nature of these operations requires ongoing vigilance and focused efforts to target ringleaders and dismantle underground banking systems.