Controlling cash flow


New regulations mandating that any cash or other negotiable monetary instruments over MOP120,000 (US$15,000) passing through MSAR Customs authorities have be declared will be enforced starting from November 1 this year, local broadcaster TDM has reported.
The announcement was made after yesterday’s meeting of the Legislative Assembly’s second permanent committee currently discussing the law proposal. The penalty for failing to declare the defined amounts is a fine between MOP1,000 to MOP500,000.
According to the chairman, Kwan Tsui Hang, the members of the committee “would prefer the law was enforced as soon as possible,” however the government stated it would require half a year to “advance with preparatory works” and “create declaration forms.”
“Some changes in the law proposal will be made but we can’t say when we will receive the new draft,” added the legislator.
The law proposal was advanced by the government in December of last year as one of the measures to comply with the recommendations of the inter-governmental body the Financial Action Task Force (FATF) to enhance local anti-money laundering measures in the MSAR.
However, the initial proposal did not include a specific minimum mandatory amount after which a transported amount should be declared.
Following yesterday’s meeting, committee members managed to include in the law proposal that the MOP120,000 minimum recommended by FATA would be the criteria for any future minimum amount to be defined.
“The government didn’t want to make this change but after [yesterday’s debate] it accepted it. The sanctioning rules should be defined in the law. This solution manages to balance all factors. We have managed to establish some criteria that was not defined by Macau but by an international institution […] There is now a legal basis to apply the law,” stated Ms. Kwan.