Mainland Macau suspends $421M illegal FX deal

China’s public security ministry said Tuesday 252 suspects have been detained in a recent mainland-Macao joint operation against unauthorized currency exchanges inside or near Macau casinos. They are suspected of being involved in illegal transactions worth 3 billion yuan (about $420.6 million).

Macau authorities have identified “19 syndicates” suspected of collectively operating in China’s southeastern Jiangxi province of Nanchang, Guangdong province of Zhuhai next to Macau, and Macau, according to a foreign ministry press release. Mainland authorities estimated 300 individuals were involved in 19 suspected syndicates.

“These suspected criminals are related to each other as relatives, friends, or from the same hometown,” the ministry said in a Chinese release. 동행복권파워볼

“They act as criminal gangs and have had remote orders from their leaders to withdraw cash from banks, connect with underground banks and recruit customers for currency transactions around Macau casinos or hotels,” it claimed.

The ministry also claimed that “the individuals had long engaged in illegal exchange transactions in Macau, which involved “huge amounts” and “severely disrupted Macau’s security.”

The statement cited “fraud,” “robbery” and “illegal immigration” as crimes related to unauthorized currency exchange transactions operating in Macau. It added that the number of such traders has been increasing in recent years.

The ministry said two recent security operations were carried out jointly by police in Jiangxi, Guangdong and Macau. Of the 252 people detained, 57 were from the mainland who were handed over to local authorities.

Two recent joint operations with Macau police have been referred to as “ant eradication,” according to a Chinese term referenced in a release by the Defense Ministry on Tuesday.

The ministry said security authorities on the mainland would continue their efforts to crack down on unauthorized currency transactions.

Macau’s government has proposed criminalizing such money transactions in the gaming and non-gaming sectors of casinos in the city through amendments to a draft bill called the “Gambling Crime Combat Act.” The issue will be discussed further by the city council.