Macau Jewelry Stores Hiding Currency Exchanges for Gamblers
Macau's Judiciary Police (PJ) have dismantled a major illegal currency exchange operation that was being conducted through eight jewelry stores near local casinos, resulting in the arrest of 33 individuals. The crackdown follows a lengthy investigation into activities involving unlicensed money exchange services provided to gamblers, with the total transaction value estimated at approximately $74 million.
LISTEN TO THIS ARTICLE:Among those apprehended, 22 individuals are Macau residents, while 11 are mainland Chinese nationals. Authorities revealed that all the suspects were members of a criminal organization engaged in illegal financial activities, including the head of the network. The group had been operating covertly through retail jewelry businesses positioned strategically near casino areas to discreetly approach and service gambling clients with unregulated currency conversions.
Related: Gambling-Related Crime in Macau Climbed in 2024The PJ's investigation indicated that the operation began as early as 2019 and continued uninterrupted despite the implementation of the amended Illegal Gambling Law in October of the previous year. During that time, the organization is believed to have earned approximately HK$20 million, or around US$2.5 million, in profits derived from exchange rate differences and service charges levied on transactions carried out for casino players.
On March 25, the Judiciary Police mobilized over 80 officers in a coordinated raid targeting multiple commercial and residential premises across Macau. Law enforcement officers confiscated more than HK$18 million (roughly US$2.25 million) in cash, along with a small quantity of casino chips. In addition to the money and chips, authorities also recovered financial ledgers and documents suspected of being counterfeit transaction receipts, which they believe were used to fabricate jewelry purchases that masked illicit currency exchanges.
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Intricate Network Hiding in Plain Sight
Police found that the organization had established a well-defined structure with specific roles assigned to different members. Certain individuals were designated to handle the movement of unlawfully obtained funds in ways that would elude detection by financial regulators. By disguising currency exchanges as jewelry sales, the group facilitated the transfer of large sums of money between Renminbi and Hong Kong dollars, allowing gamblers to obtain cash without undergoing standard financial scrutiny.
In response to the ongoing issue of illegal money exchange operations within the casino sector, Macau authorities introduced a new offense under the updated Illegal Gambling Law. The revised legislation now criminalizes any business-related money exchange conducted for gambling purposes, aiming to suppress underground financial networks that have historically exploited regulatory gaps.
Since the enactment of the revised law in October, officials have reported a marked decline in the prevalence of illicit money exchange gangs. Data from the Judiciary Police show that the number of such groups identified fell from 1,292 in the first quarter of 2024 to just 350 in the final quarter of the same year. The latest arrests mark one of the most significant enforcement actions taken since the introduction of the new legal framework.
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