Last year, casinos in Macau documented almost 4,000 instances of questionable money transactions occurring on their gaming floors. 

On Wednesday, Macau's Financial Intelligence Office announced that casinos submitted 3,837 Suspicious Transaction Reports (STRs). That signified a 12% increase compared to the previous year in the number of forms filled out. 

The Financial Intelligence Office of the city is responsible for preventing and addressing crimes related to money laundering and financing terrorism. The agency also oversees the cross-border movement of cash and negotiable instruments such as checks, money orders, traveler’s checks, postal orders, and bonds. 

Casinos must submit large-sum transaction reports whenever an individual conducts a transaction of MOP500K (US$62,325) or greater within a 24-hour timeframe. The six gaming operators must also file an STR when a cage employee detects suspicious behavior from the individual wanting to conduct the transaction, no matter the sum of money at stake. 

Doubt regarding money laundering or terrorist financing automatically triggers an STR. Cashiers mandated to receive training on suspicious transactions must not alert the customer that their transaction triggered an STR filing. 

Increased Awareness 

Macau presents a significantly altered version of itself compared to how it was prior to the COVID-19 pandemic. While casino gambling serves as the economic engine for the Chinese Special Administrative Region, President Xi Jinping of the People’s Republic has instructed the enclave's administration and Judiciary Police to enhance surveillance of junket groups during the global health crisis. 

Junkets, or VIP travel coordinators, maintained enduring relationships with the casinos in Macau. Junkets offered expensive trips, typically exceeding $100K, to the mainland’s affluent. The travel packages offered premium accommodations and first-rate travel, along with a generous amount of gaming chips approximately matching the total cost of the travel package for gambling in exclusive high-roller rooms. 

The casinos and junkets participated in the net income earned from the VIP players. Xi, however, stated that the significant influx of capital from the mainland into the tax haven posed risks to national security. 

Following the successful prosecution of Alvin Chau in 2023 by Macau, where he was a prominent figure in the junket industry across Asia, and his subsequent 18-year prison sentence in China, almost all other junket companies abandoned Macau. 

The casinos remain under strict oversight from local law enforcement officials from the Gaming Inspection and Coordination Bureau. This is likely the reason there were 406 additional STR filings last year compared to 2023. 

Casinos represented 73.2% of the 5,245 total STR submissions received by the Financial Intelligence Office. Following closely were banks and insurance firms at 20.9% with 1,097 submissions. “Other institutions” made up the rest at 5.9%. 

STR Activators 

Officials from the Macau casino sector stated that the majority of the STR reports submitted by the resorts were connected to gamblers acquiring gaming chips but engaging in little to no gambling. The “exchange of chips with little to no gaming activities” was a significant indicator that someone might be attempting to launder illicit funds. 

Casinos submitted numerous STRs for gaming chips being cashed in by another individual who initially obtained them with cash, potentially indicating a financial transaction between different parties.