CHAPTER NINE

MACAU SAR

9.1 Context and Overview

9.1.1 Organised crime in Macau In Macau, organised crime has been closely associated with the gam- bling industry ever since the Portuguese colonial Government lega- lised gambling in 1847. Today, Macau has the biggest casino industry in the world, valued at over USD 10 billion/year, even surpassing the revenue made by Las Vegas casinos.766 Chinese triads, secret societies, and other criminal organisations have operated in Macau under Por- tuguese rule and continue to do so since Macau’s return to China as a Special Administrative Region (SAR) in 1999. Following the grant- ing of the first casino franchise in 1937, several criminal organisations saw the gambling industry as an easy way to launder illicit money,767 including embezzled funds from mainland China.768 In recent years, there have been several reports about Macau’s banking and finance sector being used for money laundering and offshore investment of funds from North Korea.769 There have also been frequent allegations about prostitution, loan sharking, extortion, and the collection of pro- tection money from people associated with the casino industry.770 The , Wo On Lok, and the Big Circle gang (Dai Huen Chai), have been identified as the most important societies in Macau, especially during the 1980s and 90s.771

766 Mary-Anne Toy, ‘A bet bigger than Vegas’ (1 Apr 2006) The Age. 767 Angela Veng Mei Leong, ‘Macau Casinos and Organised Crime’ (2004) 74 Journal of Money Laundering 298 at 300. 768 Toy, ‘A bet bigger than Vegas’. 769 Lo Shiu Hing, ‘Cross-border in Greater South China’, at 176. 770 Angela Veng Mei Leong, ‘The ‘Bate-Ficha’ Business and Triads in Macau Casinos’ (2002) 2 Queensland University of Technology Law & Justice Journal 83 at 89–90; Lo Shiu Hing, ‘Cross-border Organized Crime in Greater South China’, at 187–188. 771 Lo Shiu Hing, ‘Cross-border Organized Crime in Greater South, at 180–182. 202 chapter nine

Further fuelling the influence of organised crime in Macau has been the fact that up until a reform in 2001–2 the casino industry was highly concentrated. In 1962, the Government decided to grant a monopoly to a single private organisation, the Sociedade de Tur- ismo e Diversoes de Macau (STDM), which had exclusive control of all gambling. Because Macau’s economy largely depends on revenue from gambling and associated tourism, the STDM and its owner Mr Stanley Ho became extremely influential, including in administrative and legislative circles. Allegations of corruption have been widespread and the regulation of the casino industry and its finances remained marginal, to attract foreign visitors and compete with other gaming centres in the region and elsewhere.772 Triad members have also alleg- edly participated in regional elections or have otherwise attempted to influence political processes.773

9.1.2 Criminal law in Macau Together with , Macau is one of two Special Administra- tive Regions (SARs) of the People’s Republic of China. Macau, the old- est colony in Asia, was under Portuguese rule until it was returned to China on December 20, 1999. This handover was agreed upon in the 1987 Joint Declaration of the Government of the People’s Republic of China and the Government of Portugal on the Question of Macau.774 This Declaration sets out Macau’s status under Chinese rule and Macau’s Basic Law, the SAR’s quasi-constitution. The Joint Declaration creates a ‘one country, two systems’ policy and ensures that Macau maintains a ‘high degree of autonomy’ over all matters except foreign affairs and defence and also stipulates that Macau’s laws, including its criminal law, continue operation beyond the 1999 handover.775 In accordance with Macau’s Basic Law, China has extended the application of the Convention against Transnational Organised Crime to Macau.776

772 Veng Mei Leong, ‘The ‘Bate-Ficha’ Business and Triads in Macau Casinos’, at 83–84; Veng Mei Leong, ‘Macau Casinos and Organised Crime’, at 298, 301; Toy, ‘A bet bigger than Vegas’. 773 Lo Shiu Hing, ‘Cross-border Organized Crime in Greater South China’, at 189. 774 Signed at Beijing, 13 Apr 1987, 1498 UNTS 228. 775 See further Frances Luke, ‘The Imminent Threat of China’s Intervention in Macau’s Autonomy’ (2000) 15 American University International Law Review 717 at 721–725. 776 Macau SAR, Advise of the Chief Executive No 30/2004 (31 Aug 2004).