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 and simultaneously implement a series of regulatory upgrades.

New Zealand's Deputy Minister of Justice Nicole McKee stated in a press release: '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 methods of criminals.'

According to earlier reports from Newsroom, New Zealand police have identified cryptocurrency ATMs as one of the major channels for drug dealers to launder money, with a total of 157 cryptocurrency ATMs currently in operation nationwide.

In addition to the complete ban on cryptocurrency ATMs, the New Zealand government will also set a limit of 5,000 NZD on each international remittance to prevent illegal funds from being transferred overseas.

At the same time, the New Zealand government will promote new legislation to significantly strengthen the law enforcement powers of the 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 powers to collect intelligence critical to combating crime and establish a new financial sanctions supervisory framework to support AML/CFT actions.

Despite the comprehensive upgrade of anti-money laundering regulations, the government also emphasized that it will not adopt a 'one-size-fits-all' approach, and will concurrently review current regulations to remove unnecessary compliance burdens on low-risk customers and specific businesses. Two legislative proposals are currently under review.

  • This article is reprinted with permission from: (Block Guest)

  • Original title: (New Zealand Cracks Down on Money Laundering: Complete Ban on Cryptocurrency ATMs, Cross-Border Remittance Limit of 5,000 NZD)

  • Original author: Block Girl MEL

The article 'New Zealand's Crackdown on Money Laundering! Complete Ban on Cryptocurrency ATMs, Cross-Border Remittance Up to 5,000 NZD' was first published in 'Crypto City'