Is it money laundering: Case study of China UnionPay scandal from the perspective of mutual legal assistance on anti-money laundering

Abstract

Purpose

This paper aims to, inspired by the media report concerning the misuse of China UnionPay cards, examine the elements of money laundering offence in Macau SAR through a case study, which also calls for the mutual legal assistance between mainland China and Macau.

Design/methodology/approach

This paper provides the case study of China UnionPay scandal in accordance with Macau law and comparative analysis of legislation and regulations in mainland China and Macau. Relevant suggestions are presented.

Findings

Despite the lack of actually discovered money laundering cases involving China UnionPay, the methods of smuggling money from mainland China across the border to Macau implied a “risk exposure” of Anti-Money Laundering (AML) mechanism of Macau SAR. The risk of money laundering therein makes it necessary to establish and enforce the inter-regional mutual legal assistance for AML. Sensitive issues thereof shall be handled ipso jure and reasonably.

Practical implications

This paper is a good attempt to touch upon the long-term puzzle in inter-regional mutual legal assistance in Greater China. The specific case study may act as an ice-breaker about how to develop inter-regional mutual legal assistance in specific criminal matters.

Originality/value

This paper, first, reacts to the legal problem caused by China UnionPay scandal, which also will be beneficial for the legal debates and policy-making upon the establishment and enforcement of mutual legal assistance in Greater China.

Citation

Huang, Z. (2015), "Is it money laundering: Case study of China UnionPay scandal from the perspective of mutual legal assistance on anti-money laundering", Journal of Money Laundering Control, Vol. 18 No. 4, pp. 411-424. https://doi.org/10.1108/JMLC-06-2014-0016