Macau and China Joint Operation Cracks Down on $420 Million Illegal Forex Trading Ring

August 22, 2024 China Crime & Legal

A recent joint operation by authorities in mainland China and Macau has dismantled a major illicit foreign exchange (forex) trading network, resulting in the detention of 252 suspects. The illegal forex operations, which authorities estimate were worth approximately RMB3 billion ($420 million), involved currency exchanges around Macau’s casinos and hotels.

China’s Ministry of Public Security (MPS) revealed that 1,200 police officers participated in the crackdown, according to a report published by Asia Gaming Brief. Among those detained, 57 were arrested by Macau police and have been handed over to Chinese authorities. The operation targeted 19 criminal syndicates spread across Nanchang in Jiangxi province, Zhuhai in Guangdong, and Macau.

The criminal gangs were reportedly made up of family members and friends, operating under remote commands from gang leaders. The members of these gangs performed various tasks including withdrawing cash from banks, liaising with underground money exchanges, and recruiting clients for illicit currency trading.

The MPS noted that these gangs have been involved in illegal activities for years, escalating recently and posing significant threats to public security. The Ministry believes that this illicit FX trading ring has been “causing severe disruptions to social security in the region.”

The coordinated efforts also revealed a troubling increase in illegal forex trading in Macau, which has been linked to other serious crimes. Crimes associated with the forex trading network include fraud, robbery, and human smuggling.

In response to the surge in unauthorized forex activities, the Macau government is considering new legislation to criminalize such transactions within casino areas. This proposed law aims to strengthen regulatory control and address the growing issue of illicit financial activities in the region.