To strengthen anti-money laundering (AML) and counter-terrorism financing (CFT) mechanisms, the New Zealand government announced on Wednesday that it will completely ban the operation of cryptocurrency ATMs within the country, along with a series of regulatory upgrade measures.
New Zealand's Deputy Minister of Justice Nicole McKee stated in a statement: 'Since 2019, the global financial and regulatory landscape has changed dramatically. We need a smarter and more flexible AML/CFT system that can combat the money laundering tactics of criminals.'
According to a report by (Newsroom), New Zealand police have determined that cryptocurrency ATMs have become one of the main channels for drug dealers to launder money, with a total of 157 cryptocurrency ATMs currently installed nationwide.
In addition to the complete ban on cryptocurrency ATMs, the New Zealand government will also set a limit of 5,000 NZD for each international remittance to prevent illegal funds from being transferred overseas.
At the same time, the New Zealand government will also promote new legislation to significantly strengthen the enforcement powers of police and regulatory authorities, allowing relevant agencies to more effectively combat money laundering activities.
In addition, the bill will also grant the 'Financial Intelligence Unit' greater authority to collect intelligence crucial for combating crime and establish a new financial sanctions regulatory framework to support AML/CFT actions.
Despite the comprehensive upgrade of anti-money laundering regulations, the government emphasizes that it will not be a 'one-size-fits-all' approach, and will review the existing regulations to remove unnecessary compliance burdens on low-risk customers and specific businesses. Two legislative proposals have already entered the review stage.
"New Zealand's Heavy Hand Against Money Laundering: A Complete Ban on Cryptocurrency ATMs and a Cross-Border Remittance Limit of 5,000 NZD" was first published by (Block客).
