Macau has launched consultations on a proposed overhaul of its anti-money laundering framework, with authorities seeking to introduce tighter oversight of virtual assets, expand corporate transparency requirements, and strengthen powers available to investigators and courts.

The proposed legislation is currently under sectoral consultation and is designed to bring Macau’s legal framework closer to standards established by the Financial Action Task Force (FATF). If enacted, the law would replace the territory’s existing anti-money laundering regime, which has remained in force since 2006.

The reform package arrives as regulators around the world continue to strengthen measures aimed at preventing financial crime and limiting opportunities for criminal organizations to exploit weaknesses in regulatory systems.

Virtual Asset Rules Take Center Stage

One of the most significant elements of the proposal concerns virtual assets, including cryptocurrencies. According to the consultation document, Macau intends to establish legal definitions for both virtual assets and virtual asset service providers.

Under the proposed framework, operators involved in virtual asset activities would need to obtain authorization before conducting business in Macau. Authorities would be able to impose administrative penalties on companies that provide such services without the required license.

As Macau Business reports, citing Tribuna de Macau, the draft legislation would also classify virtual assets as “goods or advantages derived from unlawful acts” when connected to criminal conduct. This provision would allow authorities to freeze virtual assets that are suspected of being linked to illegal activity.

The proposed law goes beyond cryptocurrency regulation by expanding the list of offenses connected to money laundering investigations. Authorities plan to include preparatory acts against state security, computer fraud, and general fraud within the scope of covered offenses.

In addition, judges would gain authority to intervene when suspicious transactions are identified. The proposal would allow courts to temporarily suspend financial operations in real time to help prevent the movement of potentially illicit funds. Monitoring mechanisms would apply to bank accounts, gaming accounts, payment accounts, and virtual asset accounts.

New Transparency Measures for Companies

The consultation document also outlines a series of measures intended to increase transparency within the corporate sector.

A central register of beneficial ownership would be established, creating a formal record of the individuals who ultimately control companies and legal entities operating in Macau. Authorities view the register as a tool for reducing the risk that businesses could be used to conceal money laundering activities or other forms of illicit financing.

The government additionally plans to prohibit anonymous accounts and shell banks. Restrictions would also apply to anonymous safes and financial instruments.

Banks, gaming operators, and other organizations covered by anti-money laundering regulations would face broader compliance obligations. These requirements include enhanced customer due diligence procedures, stronger monitoring of suspicious transactions, internal reporting mechanisms, and expanded record-keeping responsibilities.

Documents connected to customer verification and compliance activities would need to be retained for at least 15 years. The proposed retention period reflects the statute of limitations applicable to criminal proceedings.

Additional Safeguards Included in Draft Law

The proposed legislation contains several other provisions aimed at strengthening Macau’s financial crime prevention framework.

Non-profit organizations would be required to verify both the source and destination of funds under their control. Authorities say the measure is intended to reduce the risk that charitable or non-profit structures could be misused for terrorism financing purposes.

The draft law also includes stronger protections for whistleblowers who report suspected wrongdoing. These provisions are intended to shield individuals from retaliation after disclosing information linked to potential violations.

Administrative penalties under the proposed framework would be divided into minor, common, and serious categories. Sanctions would be determined according to the severity of the violation and any economic benefit obtained through the conduct.

Commenting on the proposals, economist António Félix Pontes and lawyer José Lupi described the reforms as “essential,” warning that without them Macau risked being placed “on the blacklist of jurisdictions with serious deficiencies.”

At the same time, the Financial Intelligence Office of the Public Security Police indicated that the measures “still need refinement” and could undergo adjustments as the legislative process moves forward.

The government plans to introduce the new framework gradually if it receives approval. Provisions related to the beneficial ownership register and associated sanctions would take effect at a later stage, giving authorities and affected organizations additional time to prepare for implementation.