Statement on online lending

Having noted the recent emergence of online lending platforms, the Monetary Authority of Macao (the “Authority”) hereby clarifies as follows:

1. Pursuant to the existing financial regulatory regime in Macao, only financial institutions authorized to operate in Macao are allowed to engage in regulated financial activities stipulated under the Financial System Act of Macao approved by Decree-Law no. 32/93/M of 5^th July, including the provision of lending services through the Internet or other electronic means. It is also an offence for overseas institutions to promote, market or offer any regulated financial activities or relevant financial products or services targeting at Macao residents through the Internet or other electronic means. Follow-up actions will be taken by the Authority on those illegal acts under relevant legal provisions.
2. If the online lending platforms merely involve in matching up the financial needs of borrowers and the fund availability of lenders and bringing both parties together to reach private loan agreements, without carrying on any regulated financial activities such as loan granting, deposit taking and fund settlement, these platforms, acting as informational platforms only, are not subject to the scope of financial supervision. Similarly, transactions concluded on these platforms are private loans which do not fall within the scope of financial supervision. In the event of a dispute arising between the borrowers and the lenders, including non-payment of due interests and principal by borrowers, the lenders may have to settle such disputes by taking themselves civil proceedings against the borrowers. As a result, participants in these platforms must pay particular attention to the relevant risks involved.