China Determined To Stop Illegal Cash Transfers
There was a story that leaked throughout the casino industry regarding the possibility of money laundering occurring between China and Macau, which has now lead to China declaring that they are going to do whatever it takes to ensure that it will not be possible to do again.
The alleged money laundering scam involved the use of credit cards and illegal POS (point of sale) devices. The devices which were built in China were illegally used to scan credit cards in Macau with the payment processor 99bill.com stating that the transactions were made in China.
The scam is thought to involve billions of dollars and run by a cross border syndicate who are thought to be making large amounts of money out of the laundering scam. Mainland China has laws in place that forbids cash to be withdrawn outside of the limits of the country yet the scam has allegedly now made this possible.
UnionPay credit and debit card system has also been used as part of the scam with the cards usually being used to claim that the money transfers were for goods such as jewelry or watches.
This alleged scam is now thought to have a massive effect on stocks and shares on the gaming industry in Macau. Share prices have in fact fallen in the city for all of the large casino operators just as analysts predicted after this money laundering scandal.
The casinos have tried to distance themselves from these allegations as much as possible and have claimed that these activities are nothing to do with them, yet this has not gamin regulators in Macau and Chinas government from declaring a strong warning that they will be doing everything possible to stop future illegal transactions from occurring.
Though this is of course the right thing to do, many feel that any strong restrictions could have a huge affect on the industry in Macau. If regular Chinese players have trouble getting the funds to be able to play n Macau, how can the industry continue to grow at the level that it has been over recent years?
We will keep you up to date with this news in Macau as we are pretty sure it is something that is going to in the news for some time to come.
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