Secretary for Administration and Justice André Cheong Weng Chon, who is also the spokesman for the government’s top advisory Executive Council, announced last week that the local government has finished drafting a new bill regulating the city’s financial system, which proposes to introduce the licensing of limited-scope banks, aka restricted licence banks.
According to specialist websites, a limited-scope bank means a bank or financial institution that is only permitted to carry out a limited scope of banking businesses and services.
Cheong made the announcement during a press conference at Government Headquarters on Friday. The bill will be submitted to the Legislative Assembly (AL) in due course for debate, review and vote.
The current decree law regulating the city’s financial system was promulgated in 1993.
Cheong said on Friday that new legislation regulating the city’s financial system was needed for the local government to meet its policy of appropriately diversifying the city’s economy and promoting the development of a modern financial industry in compliance with its second five-year plan on economic and social development from 2021 to 2025, which was released last year.
Cheong said that after consulting the city’s financial sector while considering Macau’s current real situation, the government has drafted the bill with the aim of improving its supervision of the city’s financial businesses and its regulation on fining violators.
Cheong said that with the aim of promoting the development of a modern financial industry, the bill proposes to introduce a new type of licence, limited-scope banks, which Cheong said would increase the flexibility of Macau’s banking licensing system.
In addition, Cheong said, the bill also proposes to establish a system to issue temporary permits for trial operations of financial technology (aka fintech) projects, with the aim of promoting the application of new technology to the city’s financial businesses.
According to Cheong, the bill also proposes to simplify officially required procedures for the public issuance of bonds.
Furthermore, Cheong said, the bill also proposes to increase fines on those who receive deposits or other repayable funds from the public without official authorisation, with the aim of strengthening the government’s ability to combat illegal financial activities.
Secretary for Administration and Justice André Cheong Weng Chon (right) and Henrietta Lau Hang Kun, a member of the Administrative Committee of the Macau Monetary Authority (AMCM), address Friday’s Executive Council press conference at Government Headquarters. – Photo courtesy of TDM
