New Zealand’s Ministry of Justice is set to ban crypto ATMs as part of a sweeping overhaul of the country’s anti-money laundering and counter-terrorism financing (AML/CFT) framework.
The move forms part of a broader strategy to tighten regulations around financial crime while reducing compliance burdens for legitimate businesses.
The upcoming bill will target “serious financial crime” by making it harder to move funds into the “digital economy”.
McKee said:
“This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape… [We will] establish a new financial sanctions supervisory regime and initiate engagement on a sustainable levy to fund AML/CFT system improvements.”
According to her, this new approach will deliver more clarity and consistency for businesses while maintaining a strong focus on preventing criminal misuse of the financial system.
A key component of the government’s reform package is the proposed ban on crypto ATMs, which authorities say are often exploited to convert illicit cash into digital assets.
McKee stated that shutting down these machines would disrupt a common method of laundering money through cryptocurrencies.
In addition to banning crypto ATMs, New Zealand plans to limit international cash transfers to $5,000.
The aim is to restrict the amount of money that can be moved offshore in a single transaction, reducing the capacity of criminal organizations to shift large sums undetected.
The proposed reforms also include amending specific AML/CFT compliance requirements for lawful businesses, enabling authorities to concentrate resources on higher-risk entities.
She said:
“The FIU will be able to order the production of important contextual information other businesses on the financial activities of persons of interest. This will enable the more effective development of the financial intelligence needed to bring the criminals to justice.”
McKee pointed out that these changes are designed to align New Zealand with global standards and enhance the country’s ability to prevent financial crime.
She concluded:
“Since 2019, the global financial and regulatory landscape has shifted significantly. We need a smarter, more agile AML/CFT system – one that targets criminals ability to launder money, while enabling New Zealand businesses to operate efficiently and competitively.”
