Authorities in Macau have arrested a mainland Chinese man suspected of running an illegal currency exchange scheme near a casino in the Cotai area. The 33-year-old individual, identified by his surname Kwok, was apprehended during a targeted enforcement operation led by the Judiciary Police earlier this week. The arrest highlights the region’s continued efforts to combat underground financial activities tied to casino gaming.
Surveillance Uncovers Suspicious Activity
Kwok was caught after police officers, conducting routine surveillance in the vicinity of a Cotai hotel, observed suspicious behavior involving two men. Surveillance footage revealed one individual transferring funds to Kwok via mobile payment, after which Kwok handed over HK$5,000 (approx. US$640) in casino chips. The recipient then proceeded to a nearby casino where he reportedly began gambling and lost part of the exchanged chips.
Police intervened shortly after the transaction, detaining both parties for questioning. Kwok allegedly admitted to offering unauthorised currency exchange services to gamblers since mid-April, circumventing regulated financial channels and earning profits through discreet chip-for-cash transactions.
Profits and Seized Assets
According to the Judiciary Police, Kwok charged illicit service fees during these exchanges, profiting by offering chips at a marked-up rate. On the day of the arrest, investigators found he had exchanged HK$5,000 in chips for RMB4,850, pocketing a RMB200 (approx. US$28) margin. Over the course of his illegal activities, he is believed to have made around RMB10,000 (approx. US$1,380) in profit.
Authorities confiscated a total of HK$78,000 (US$10,000) in casino chips from Kwok, alongside HK$4,000 in cash from the gambler involved in the transaction. The chips are believed to have been used in multiple illicit exchanges in the area.
Legal Action and Broader Implications
Kwok now faces charges under Macau laws that prohibit unauthorised currency exchange in connection with gambling activities. The case has been transferred to the Public Prosecutions Office for further legal processing. If convicted, the suspect may face stiff penalties, including fines and imprisonment, depending on the extent of the violations and financial damage caused.
Government Response and Ongoing Crackdown
Macau’s law enforcement agencies have reiterated their commitment to eradicating underground money exchange networks that operate around casinos, citing concerns over financial crime, money laundering, and the circumvention of formal banking systems. Authorities stress that such activities not only disrupt legal financial flows but also expose gamblers to potential fraud and exploitation.
The Judiciary Police are expected to continue heightened surveillance and patrols in key casino zones, working closely with casino operators to monitor suspicious behavior and uphold compliance with financial regulations. The arrest serves as a clear warning to others engaged in similar unauthorized practices, as Macau tightens its grip on illicit financial activity in its thriving gaming sector.
