The Ministry of Justice of New Zealand will prohibit crypto money machines as part of a major overhaul of anti-money laundering practice and the financing of the country of anti-money financing (AML/CFT).
The relocation is part of a broader strategy to tighten the regulations on financial crime and at the same time reduce compliance with legitimate companies.
In a statement released on July 9, associate Minister of Justice Hon. Nicole McKee confirmed that the government intends to introduce new legislation to strengthen enforcement powers for law enforcement and regulatory authorities.
The coming account will focus on “serious financial crime” by making it more difficult to move funds to the “digital economy”.
McKee said:
“This government is serious about focusing on criminals, not tying legitimate companies in unnecessary bureaucracy … [We will] Set up a new supervisory regime for financial sanctions and start involvement on a sustainable tax to finance improvements of AML/CFT system. “
According to her, this new approach will provide more clarity and consistency for companies and at the same time maintains a strong focus on preventing criminal abuse of the financial system.
Crypto -money machine ban
An important part of the government’s reform is the proposed ban on crypto money machines, the authorities say they are often exploited to convert illegal cash into digital assets.
McKee stated that the closing of these machines would disrupt a common method to money laundering through cryptocurrencies.
According to Bitcoin ATM radar data, New -Zeeland worldwide is in eighth place in the number of active crypto money machines, with 221 units that are currently in operation. A prohibition would probably completely dismantle this network.
This decision is in line with international efforts to limit crypto -atm access to limit illegal financial flows. In 2024, Germany seized $ 28 million from illegal crypto money machines, while Australia and various American states, including North Dakota, rolled out tighter regulations aimed at fraud and abuse that has been linked to these machines.
International cash transactions limit
In addition to prohibiting crypto money machines, new Zeeland is planning to limit international cash transfers to $ 5,000.
The aim is to limit the amount of money that can be moved in a single transaction offshore, so that the capacity of criminal organizations to reduce the large amounts that are not detected.
The proposed reforms also include changing specific AML/Cft-Compliance requirements for legal companies, so that authorities can concentrate on entities with a higher risk.
She said:
“The FIU will be able to order the production of important contextual information that other companies have important about the financial activities of people. This makes the more effective development possible of the financial information needed to bring criminals to court.”
McKee pointed out that these changes were designed to tailor new Zeeland to worldwide standards and the ability of the country to prevent financial crime.
She concluded:
“Since 2019, the global financial and regulatory landscape has shifted considerably. We need a smarter, Agile AML/CFT system -one that is aimed at the ability of criminals to launch money, while they can operate new -Zeeland companies efficiently and competing.”