As part of an ongoing battle to stem illegal outflows of cash from China, the Macau government said it is beefing up efforts to crack down on cash transfer services that promise to move money off the mainland through the internet.
The government’s Monetary Authority has issued a warning against the services, many of which are promoted at the street level and via the popular Chinese social media platform WeChat, saying they are causing a “serious nuisance” to the public.
The services purport to enable consumers wishing to evade China’s strict currency controls to transfer cash from balances stored on online payment systems and virtual credit cards in China.
The Monetary Authority warned “any individuals or entities engaged in providing unauthorized financing activities in Macau” they could face fines up to MOP5 million, or more than US$600,000.
The Chinese government has in recent years imposed a number of measures designed to curb capital outflows. New rules imposed last January limit individuals to a maximum of 100,000 yuan a year in withdrawals from Chinese banks (approximately US$14,000), no matter how many accounts or ATM cards they have. The daily cap is 10,000 yuan per card.
Beijing also imposes curbs on the use of the country’s popular UnionPay bank card at pawnshops and certain jewelry stores in or near Macau casinos, a well-publicized method of currency evasion in which mainland visitors buy expensive watches or jewelry then return them for cash refunds, minus commissions to the retailers.
