Officials in New Zealand have restricted foreign cash transfers to $5,000 and outlawed cryptocurrency ATMs in an attempt to combat money laundering and organized crime.
The steps were revealed by Associate Justice Minister Nicole McKee on Wednesday as part of the government’s effort to revamp its AML/CFT regime, which seeks to combat the financing of terrorism and money laundering.
AML Laws Targeting High-risk Crypto Channels
Part of the reform package is a prohibition on cryptocurrency ATMs and a cap of $5,000 on foreign money transfers. According to officials, the goal of these actions is to prevent criminals from using certain channels to transfer illegal payments.
In a statement, McKee assured that “by banning crypto ATMs,” it would be more difficult for thieves to transfer funds to “high-risk assets” like cryptocurrency. Additional authorities will be granted to the Financial Intelligence Unit (FIU). So that it may continue to request information from reporting companies, such as banks, about people who have been marked for questionable behavior.
Before the year comes to a close, parliament is anticipated to enact two legislation that would overhaul anti-money laundering. While maintaining high standards, they will alleviate some of the most onerous compliance obligations for law-abiding enterprises. The goal is not to reduce standards but to apply them sensibly, according to McKee. Who clarified that making compliance easier does not imply reducing standards.
New Zealand’s Ministerial Advisory Group on Transnational, Serious and Organized Crime found in April that criminals were using crypto ATMs. In order to swiftly turn cash into cryptocurrency and transmit it overseas for things like drug payments or fraudulent transactions.
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