Homicide, drug trafficking, forged documents, money laundering and human smuggling continue to bedevil Macau. But there is hope, says security bureau coordinator Diamantino Santos.

It seems they are getting smarter. The police or the criminals? Perhaps both. According to official data, counterfeit currency cases in Macau increased more than 50 percent during last year compared to those detected in 2005. An explanation? The higher the money flow, the higher the risk. However, information from the beginning of this year shows that it might get a little more complicated than that. The numbers may continue to rise in 2007: this year’s fake currency is getting so perfect that it’s deceiving more and more security systems.

In fact, the number of counterfeit currency cases found in Macau has been rising since 2001, when there were only 19 cases. The biggest jump happened in 2003, when the number rose from 32 to 151 cases. And the trend continued during the three following years until last year, when there were 632 cases – 213 more than in 2005 and 347 more than in 2004.

But not only has the number of detected cases increased, but so have the number of fake bills and coins found in Macau: 353 in 2004, 975 in 2005 and 1075 last year.
In terms of amounts involved and looking at official data from the last three years, there were a total of 285 cases of counterfeit currency in 2004, amounting to some 123,640 patacas. In 2005, the figure rose to 497,566 patacas. Last year, although the number of cases involved increased by more than 50 percent, there was a slight decrease to a total of 471,150 patacas.

Still, after examining the statistics related to the kind of currency forged, Hong Kong dollars forgeries increased from 141,560 HK dollars in 2005 to 243,970 in 2006. Forgeries of yuan went from RMB 31,610 to RMB 44,180 – representing the biggest number of fake bills and coins found last year – while fake US dollar increased from US$11,320 to US$16,525.

The exception, last year, were fake patacas: this kind of forgery decreased from MOP 211,600 in 2005 to MOP 40,605. One suggested explanation is that the new 1,000 patacas bills issued by BNU contain a number of security features which may have deterred the counterfeiters efforts, and so the number of fake bills dropped from 211 in 2005 to only 36 in 2006.

Why are counterfeited currencies increasing in Macau? First of all, as the Coordinator of the Security Bureau, Diamantino Santos, recalls, it might have to do with the, “Macau and Hong Kong scenarios”. Which means this: people in the two SARs don’t use plastic money as much as westerners. And neither do most of the tourists from the Chinese mainland. Actually, they use it even less. “And the criminals know it. They see the money movement in the casinos and stores and realise it’s a good market to let the currency flow”, he says, adding that the problem is common in other parts of the world and authorities are working hard on it, especially by exchanging more information with their counterparts and responding to cross-border crime.

But where does all this counterfeit currency come from? He further believes that, “The chance of these fake bills being manufactured in Macau is remote”, thinking about the equipment and people with the know-how needed to get the job done. Especially if we’re talking about the most perfect forgeries, he explains, since these need special ink and machinery built to perform as well as the ones used to issue true currency.

So, where does it come from? It’s hard to tell. Santos said in one meeting at the beginning of this year, that an official from Guangdong province said they could still not confirm whether the fake 1,000 Hong Kong dollar bills found in 2007 came from the mainland. At that time, police found about 2,000 of these fake bills in Hong Kong and about 200 in Macau.

“This time, people realised that the counterfeited bills were very similar to the originals. In fact, even banks fell victims to the forgeries”, he said, adding that forgers are becoming more skilled. These fake bills are increasingly incorporating more security mechanisms and some people suspect they may not even be manufactured in mainland China or Hong Kong, but elsewhere. However, “police is still investigating”.

Forged documents and illegal immigrants
Also contributing to the rise in the so called crimes against society – the kind of crimes that increased the most last year – is documents forgery: 496 cases in 2006, which means 42.9 percent more than in 2005. “Almost 99 percent of the phenomenon is linked to illegal immigrants”, says Santos.

Looking back at statistics for fake documents since 1999, there are peaks and valleys. But some dips might have to do with a change in the criteria used to collect the statistical data and therefore may not correspond to reality, he says. Linked to document forgery is the use of someone else’s ID, although in 2006 the record shows that there was only one more case than in 2005.

Either way, the fact remains that the number of forged documents has increased in the last three years. However, there have been worse years, like 1996 with 516 cases.
One factor that can explain the rise through the years is the number of steps taken by the authorities. It’s public knowledge that the recent mainland policy of individual visas caused the number of tourists to increase continuously. Explains Santos, “However, as the police authorities realised that many tourists are pseudo-tourists who come to Macau just to commit crimes, we collect their data and send it back to their homeland. By doing so, the Chinese authorities from the mainland may take them into account when they have to decide whether to issue a new visa”.

The problem is that many of these tourists, who overstay in Macau and are sent back, cannot get a new visa, at least for a while. So they’ll try everything to come back. How? Illegally: by acquiring forged documents, for example. “So, the goal is to reduce the crime rate, but by doing so we indirectly contribute to a rise of some kinds of crime, like these”, he notes.

As for people who were sent back to mainland China because they had no legal permission to stay in Macau, their number has also registered a sharp increase, from 516 in 2005 to 1,085 in 2006. This represents an 110 percent increase. As for the mainland illegal immigrants holding no individual visa who exceeded their allowed time in the SAR, statistics accounted for 6,341 in 2005 and 11,430 last year, a rise of more than 80 percent.

Although in lesser numbers, this rising trend also applied to mainland people who exceeded their legal time in Macau but had an individual visa (45.3 percent more), as well as to foreigners who also exceeded their time and were sent back home (42.9 percent more).

Official figures show that the increase in the number of people sent back to their countries had to do with people who overstayed in Macau. According to Santos, this may be happening because, “there are more people holding documents that allow them to enter Macau”, such as passports or individual visas. ” Under the local law, all these people are considered “illegal immigrants”, although the term is currently only applied to people who enter the SAR with no legal permission, not to those who overstayed.

In sum, Macau authorities sent back a total of 17,013 people last year, which represents a 70.7 percent rise compared to figures for 2005 (9,965). For the CPSP commander, Superintendent Lei Siu Peng, the “significant increase in the number of people sent back to mainland China, whether for overstaying or for having no travel documents” can be explained by the “increase of the supervision actions against illegal labour”.

In a brief written sent by e-mail to Macau Business – after a request for an interview – Lei Siu Peng considers that, “the growing number of available jobs in Macau leads many of these people to try to stay here as long as they can, working mainly in construction sites”.

Organised crime and violence
As they say in Hong Kong, the way to kill the organised crime groups is to cut off their sources of profit. One way to do it, Santos believes, might be to create new laws about cyber-crime or increase the fight against money laundry. As for violent crimes, there’s a more optimistic view.

Information regarding organised crime in Macau seems to be scarce. Santos prefers to point out the importance of regional and international cooperation, as well as measures taken to prevent money-laundering, such as last year’s creation of the Financial Information Office, which cooperates with the PJ in this area.

As for violent crimes, however, statistics show a different trend when compared to the general increase of crime. Since 2000, the number of violent crimes remained stable or even decreased. During the last two years violent crime decreased 5.1 percent from 2005 to 2006. However, homicide cases increased 80 percent from five to nine cases. So did drug trafficking cases (10.9 percent increase), and extortion cases, with one more case last year.

Turning the tide
What measures is the state taking to turn the tide? More video-surveillance, for one. Still, Santos points out that this is “a very sensitive matter” and no one is saying that this will be done. “But the existence of such a service would be ideal, following in the steps of other countries”, he says.

Currently, Macau already has some surveillance cameras in place but, he says, they are mainly directed to traffic issues. “However, if Macau had a neutral and civilian entity, this data could be used for security purposes and help fight crime”. Other theoretical measures range from a study to use urine exams to combat psychotropic substance abuse to creating specific legislation to fight computerised crimes.

In reality, reform efforts are in the work with an organic structure review of the police and changes in the Unitary Police Services’ law.

Also, the Legislative Assembly has already received a draft of a new law about private security companies, whom, Santos says, may, “perform their duties of cooperation” and represent “a great aid” to authorities. He adds that it’s “A way to use civil society in favour of local security”.

Shark attacks

Money lending thugs target mainland gamblers
When the Security Secretary presented the official numbers for 2006 crime cases, one figure jumped up: the number of kidnappings doubled, from 24 cases in 2005 to 48 in 2006. However, Diamantino Santos explains that, “95 percent of these cases in Macau are usually related to gambling linked crimes, like loan sharking”. The figure accompanies the ascending trend registered by other illegal activities closely tied to the game industry, such as loan sharking, fraud, robbery or abuse of confidence.
Macau Business has additionally learned that there were 917 illicit activities related to gaming in 2006, only four more cases than in 2005. Of these, 164 cases involved loan sharking (four more than in 2005) and 79 cases of gambling chips theft (three more than the previous year). However, other figures reveal a decrease of crimes inside the gaming spaces: fraud dropped to 31 cases (compared to 45 cases recorded in 2005), pick-pocketing decreased from 161 to 114, fraud by simulating chip ownership dropped from 23 to 4 and robbery also decreased from three to two cases in 2006.

Nevertheless, Santos warns that these figures only represent crimes detected inside casinos. They should not be confused with all the crimes linked to the gaming industry, since many of them occur outside the casino walls. On top of this, there are other crimes related to people who, at the time they were complaining, didn’t know the crime happened inside the casino

Who is effected most? Says Santos, “our mainland China tourists are usually the victims instead of being the perpetrators”.

Smooth criminals
Who is taking advantage of the situation, then? Santos explains that the illegal activities linked to the gaming industry and their agents, “have changed a lot” over the last years because of the type and origin of the players. Before, he says, most players came from Hong Kong and a few came from other countries, such as Thailand or Japan. Over the last six years, the vast majority of players are from the mainland. This changed the profile of people committing crimes inside casinos. Why? It’s a simple matter of making sure you can find the person who borrowed money from you, in order to get it back.

Therefore, if the players came from Hong Kong, the usurers would also come from Hong Kong. Now, as most of them are from the mainland, it’s likely that the people who lend them money also come from the mainland. Therefore, they would be able to chase them back to their home town once the loan was made.

Make no mistake though. There are two sides to this coin. Santos recalls, “People usually say that China is exporting unemployment to the outer regions. In this case, Macau is also exporting some crimes to the mainland”, he says. “The areas closer to the SAR are witnessing crimes that are typical of Macau. And that’s why cooperation between regional authorities helps both parts”, he added.

Casino security
How do loan sharks operate? Some lend money at the beginning and charge high interest at back at the end. Others charge one percentage at the time of the loan, then there are the chip handlers, and so on and on. Either way, there is a kind of trusting relationship between the loan shark and the borrower.
Says Santos, “There are people who say that casinos in Macau are a different world. Well, maybe this is a backwards perspective, since things are in constant mutation”. He gives an anecdote about one operator who asked the government for authorisation to lend money to players, in order to prevent irregular activities. Don’t casinos detect these crimes? Or do they simply close their eyes? Santos retorts, “I could ask the same question about some irregularities that you may know were occurring in your magazine. Maybe you wouldn’t reveal them, because it was in your magazine’s best interest to keep them going on. In any case, it’s not the magazine who’s committing the crime…” In terms found in physics, he says, it’s called, “a catalyst agent. In a certain chemical compound, there are some agents who simply don’t react…”. Nevertheless, he believes that casinos know how to handle these cases. And that they act according to the law.

Combating Transnational Crime: Concepts, Activities and Responses

Courtesy | MacauBusiness

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