Watch out! Facial recognition

The Monetary Authority of Macau (AMCM) has instructed local automated telling machine operators to refuse cash withdrawal services to China UnionPay customers from Mainland China if their ATMs do not allow face-recognition verification. The ‘Know Your Customer’ technology, unveiled in Macau in May, has now been installed in 834 of the 1,300 ATMs in the territory to combat Mainland China money laundering, increase bank security, and reduce the rapid flow of money out of the country in contravention of strict currency controls.
The technology will include facial recognition as well as identification card review. In a statement on its website, the AMCM said the move was designed to ‘protect the legal interests of financial institutions and Mainland China UnionPay cardholders . . . [and to] . . . ensure the effectiveness of measures to monitor ATM cash withdrawals’.
Increased security is always a great thing, especially in this day and age. It was reported by South China Morning Post in May that cash dispensing machines in Macau cough up more than HK$10 billion a month and that special measures would be introduced to ensure ATMs never run out of banknotes.
Since Mainland China tourists make up the vast majority of visitors to Macau – 20 million of the city’s 30 million tourists hailed from the Mainland in 2016 – adding a higher level of security to ATMs seems reasonable. I wonder; however, if this new technology could expand to other areas and potentially cause an unforeseen hiccup in banking practices for foreigners in Macau.
Currently, Macau businesses employ many foreigners that add to the expat community but it is very challenging for foreigners to obtain bank accounts if they do not hold a work visa. Specifically, spouses of blue card holders are allowed to co-sign on bank accounts but it is uncommon for a spouse to have a bank card in his or her name and not the spouse. If ATM facial recognition is installed, why not apply it to all customers?
If using the technology were to expand to other demographics outside of Mainland customers, it would be possible that spouses might not be able to withdraw cash from ATMs anymore because their face would not match that of the account holder. Perhaps banking institutions in Macau could review their policies to allow dependents to open accounts of their own.
Clearly, rolling out the ‘Know Your Customer’ technology is the most important thing on the agenda – but it will be interesting to follow the expansion of the tech and its reach.