Macau police step up probe of illegal UnionPay transactions

Macau police are ramping up investigations into unregistered China UnionPay terminals, saying up to MOP300 million (US$37.6 million) has been moved through such transactions in the first eight months of 2014.
Local media reports that 51 suspects were identified, including 39 from the mainland and 12 from Macau, with links to the "illegal transactions."
Macau is seeking to clamp down on the use of unauthorized terminals as a means to circumvent the mainland’s cross-border currency controls.
Since the start of the year there have been some 40 investigations, with 34 of the cases sent to the territory’s Public Prosecutions Office.
UnionPay International is a subsidiary of China UnionPay focusing on transactions outside the People’s Republic of China, including the Special Administrative Regions of Macau and Hong Kong. UnionPay receives 0.2 percent of a maximum fee of 1.4 percent in each transaction by traders legitimately using its terminals.
According to reports UnionPay International lost out on MOP600,000 in transaction fees for deals allegedly done on unregistered terminals in Macau between January and August. In 2013, UnionPay sales in Macau totaled US$22.5 billion.
There has been a ban on jewelry and watch shops within the city’s casinos from applying for new UnionPay swipe terminals since July 1.