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May 9, 2014

Macau, UnionPay crack down on illegal credit card transactions

Macau and UnionPay, China's state-backed payment card network, have cracked down on the illegal use of mobile card-swiping machines, used to evade China's currency exchange controls for gambling in the region.

By Verdict Staff

Macau and UnionPay, China’s state-backed payment card network, have cracked down on the illegal use of mobile card-swiping machines, used to evade China’s currency exchange controls for gambling in the region.

It was earlier reported that UnionPay cards are being used illegally to obtain cash through false shopping of goods in Macau to thwart Chinese strict currency-export controls.

UnionPay said it had unveiled new risk management and anti-money laundering measures after consulting with the Macau officials.

An e-mailed statement of UnionPay was cited in Bloomberg News, "It is our top priority to combat overseas money laundering, capital flight and other illegal bank card use, and we collaborate closely with relevant authorities to do so."

"We have always prohibited cash-back activities through bank card transactions that are made without actually making purchases."

As per the prevailing regulation, a Chinese citizen can only withdraw up to CNY20,000, ($3,200) per day, whereas gamblers were getting cash back by shopping goods from one of Macau’s 180 pawnshops or jewellery stores using UnionPay cards.

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