Annual Meeting of the Offshore Group of Banking Supervisors Held in Macao

The 2007 Annual Meeting of the Offshore Group of Banking Supervisors (OGBS) organized by the Monetary Authority of Macao was held on 29-31 October at the Venetian Macao Convention and Exhibition Centre. The OGBS was founded in 1980. It is an international organization of financial regulators of major offshore financial centres. Its objective is to promote cross-border banking supervision and combat money laundering and financing terrorism in accordance with international standards. The OGBS holds its annual meeting in Macao for the first time. There were more than 40 delegates who participated in the meeting. They were representatives from international organizations such as the International Monetary Fund (IMF), Basel Committee on Banking Supervision (BCBS), Financial Stability Institute (FSI), Financial Action Task Force (FATF), the Egmont group, Financial Services Authority (FSA) of UK, and regulatory authorities of Aruba, Bahamas, Barbados, Bermuda, Cayman Islands, Guernsey, Isle of Man, Jersey, Labuan, Macao SAR, Mauritius, Netherlands Antilles, Panama, Vanuatu, BVI, Samoa and Cook Islands. The Chairman of the Board of Directors of the Monetary Authority of Macao (AMCM), Anselmo Teng delivered the inauguration speech. Mr. Teng made a brief introduction of the development of the economy and financial sector of Macao. He pointed out that as the regulatory authority, AMCM has persistently been perfecting financial supervision in Macao based on the best international practices and standards with adaptation to cope with the practicable situation of Macao. At the same time, it helps to promote financial development to a higher level, as well as regional and international cooperation with a view to maintaining the sustainable and healthy development of the local financial system in an environment of rapid economic growth. Against the backdrop of an international concern about money laundering and financing terrorism and the integration of Macao into the international community, the Macao SAR Government has, after the return of Macao to the Motherland, attached great importance to efforts relating to anti-money laundering and the combating of financing terrorism (AML/CFT). In 2001 and 2006, it invited international organizations to appraise the AML/CFT mechanism of Macao. It also formulated related legislations in accordance with recognized international standards and adopted a series of preventive measures. For the financial system, AMCM issued and revised guidelines specifically on AML/CFT and ensured compliance through onsite inspection and offsite surveillance. Simultaneously, AMCM attached much importance to the liaison and cooperation with international organizations and regulatory authorities of other territories, hosting this annual meeting was one of the examples. This annual meeting lasted for 3 days, including a seminar jointly led by the FSI and OGBS on the first day followed by general meeting of all members on the next 2 days. Topics discussed and resolved included review of new development in international supervision, “Basel II” and implementation of core principles for effective banking supervision, “risk based” methodology in supervision, enhancement of governance, the cause and aftermath of subprime loans and corresponding supervisory policy, the 2006 AML/CFT mutual evaluation of certain members (including MSAR), future development of OGBS and its function in the international financial supervisory domain, and accession of new members.