China’s Ministry of Public Security announced on Friday that it had dismantled three underground banks linked to illegal money exchange in Macau and frozen funds worth 3.9 million yuan (500,000 euros).
At a news conference in Beijing, the deputy director of the Zhuhai Public Security Bureau said police in the city neighboring Macau had launched an operation that culminated in the arrest of 13 suspects.
Niu Yanjun said those detained included Chen Muxia and Li Mouwei, believed to be the leaders of two gangs that were involved in illegal money exchange near Portas do Cerco, the main border between Zhuhai and Macau.
Niu added that HK$100,000 (about €12,000), mobile phones, electronic payment machines and bank cards, as well as funds frozen in bank accounts, were confiscated during the operation.
At the same conference, the deputy director of the department’s Criminal Investigation Department said the size of these criminal groups had “grown rapidly” in recent years.
Cheng Shiqiu explained that the groups had achieved annual profits of around HK$1.5 billion (€177.5 million), not only from money exchange but also from usury, lending money at very high interest rates.
Something that ultimately encouraged the practice of other illegal activities, including “violent crime, fraud, theft and smuggling, which seriously undermine security and social stability” in Macau, Chen lamented.
The leader said the ministry had asked security forces in Macau and mainland China to strengthen cooperation to “toughen the crackdown” on illegal money exchange in the semi-autonomous region.
On June 3, China’s official Xinhua News Agency reported that the ministry had organized a “special nationwide working meeting” on illegal currency exchange in Macau.
At the time, the ministry said the illegal exchange was linked to money laundering and underground banks that were used to transfer money between different jurisdictions, namely between Macau and the Chinese interior.
The Macau government announced in late May that the number of casino gambling crimes more than doubled in the first quarter compared to the same period last year, from 158 to 351 cases.
Security forces have acknowledged the rise in illegal money exchange and have spoken of a trend towards “grouping and professionalization.” From January to March, 1,292 people involved in the activity were identified, of whom 1,227 were expelled from the territory.
In December, Macau Security Minister Wong Sioh Chak raised the possibility of amending the Criminal Code to criminalize illegal money exchange.
In March 2022, the US State Department’s annual report named Macau as one of the world’s largest money laundering hubs.
Author: Lusa
Source: CM Jornal
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