New Zealand has announced new anti-money laundering reforms that include a ban on cryptocurrency ATMs and limits on international cash transfers.
Goals of the New Anti-Money Laundering Reforms
According to Associate Justice Minister Nicole McKee, the reforms unveiled on July 9 aim to "target criminals" by restricting their ability to convert large volumes of illicit cash into cryptocurrency through kiosks. The goal of the reforms is to create an environment conducive to legitimate business while minimizing opportunities for criminals.
Expected Enhancements to Oversight
The new measures will include a bill aimed at enhancing enforcement powers for law enforcement and regulators, as well as expanding the capabilities of the Financial Intelligence Unit to track financial activities linked to persons of interest. McKee stated, "We want New Zealand to be one of the easiest places in the world to do legitimate business and one of the hardest for criminals to hide."
Global Response to Crypto ATM Usage
The use of crypto ATMs for laundering money has raised concerns among regulators worldwide. Reports indicate that criminal groups utilize these machines to move funds abroad within minutes, including financing drug imports and scams. Similar issues have prompted other countries to strengthen controls over cryptocurrency ATMs.
The new measures targeting the restriction of crypto ATMs and international cash transfers are integral to New Zealand's broader strategy for combating money laundering and ensuring financial system security.
