Despite the fact that such financial transactions were made illegal last year, Macau's Judiciary Police say they recently busted an illegal money exchange that was still operating.

Unauthorized currency trades were prohibited by the Macau Special Administrative Region Government's Law to Combat Crimes of Illegal Gambling, which was passed in October.  Such transactions assisted mainland gamblers in getting around Macau's entry restrictions, which prohibit visitors from bringing in more than the equivalent of roughly US$5,000 in cash, prior to the 2024 legislative modification.

Even the general population frequently used local currency exchanges because Macau casinos were cash-only establishments.  With a steep price for the convenience, the firms take wire transfers from customers and give them their piles of cash when they arrive in the enclave.

According to Macau's law enforcement department, a last illegal exchange was just stopped.  According to the police report, at least HK$300 million (US$38.2 million) was moved thanks in part to the underground enterprise.  According to reports, the illegal enterprise's ringleaders made over US$1.2 million from the transactions.

Movement of Money

High earners in the communist nation of China are obligated to give the People's Republic about half of their monthly salary.  China has implemented stringent measures, such as prohibiting individuals from entering Macau or Hong Kong with more than $5,000 in cash, to restrict the flow of capital out of the nation and away from the PRC's supervision.

Gamblers are forced by the cash requirement to use authorized, government-regulated money exchanges for bank transfers.  Although it was believed that the 2024 law reform would have a detrimental effect on Macau casinos, the six gaming behemoths have so far benefited from a number of regulatory improvements.

The elimination of junkets, the VIP travel agencies who worked with the casinos for years to attract high rollers to Macau, is one example of this.  Mainlanders purchased opulent vacation packages that included five-star lodging and private aircraft service.  They frequently received gaming credit upon arrival that was almost equal to the cost of their travel.

Macau has broadened its base as a result of junkets escaping to more alluring markets where criminal prosecution is not a concern.  Thus far, the billions of dollars invested have paid off, as the number of visitors has almost reached pre-pandemic levels.

Compared to January through July 2024, gross gaming revenue has increased 6.5% throughout the first seven months, and casinos have made over $1 billion more at this time.  Additionally, gaming analysts think the resort companies are in a much stronger position now that junkets aren't receiving a piece of the action.

Strict Penalties

Penalties for anyone found guilty of such offenses were increased by Macau's 2024 Law to Combat Crimes of Illegal Gambling.  Anyone who helps transfer money into Macau without a license or violates the money exchange law faces a maximum sentence of five years in prison.

Four guys were reportedly taken into custody by police in connection with the recent illegal money exchange scheme.  They were all in the 30–32 age range.

The charges against the four will be handled by Macau's Public Prosecution Office.  They are charged with operating an illicit cash exchange for gambling purposes and managing a criminal syndicate.