New Zealand has announced a ban on cryptocurrency ATMs and an international cash transfer cap, officials say it is part of a broader effort to disrupt money laundering and organized financial crime.
In an announcement Wednesday, Justice Minister Nicole Mackey announced the measure as part of a government overhaul to combat money laundering and terrorism (AML/CFT) administration funding.
The reform package includes a complete ban on crypto ATMs and introducing a $5,000 limit on international cash transfers. Officials say both measures are designed to block the paths that criminals use to move illegal funds.
“By banning crypto ATMs, it makes it even more difficult for criminals to convert cash into high-risk assets such as cryptocurrencies,” Mackey said in a statement. “This government is serious about targeting criminals and will not link legal businesses with unnecessary deficits.”
Related: Number of installed crypto ATMs approaches the highest record ever
New Zealand boosts financial surveillance
The Financial Information Unit (FIU) will also be granted new authority to request ongoing information from banks and other reporting agencies regarding individuals flagged for suspicious activity.
The two AML reform bills are already in Congress and are expected to pass by the end of the year. These “remove some of the most burdensome compliance requirements and provide practical relief to businesses by the end of the year,” McKee said.
The government said relaxing compliance among law-abiding businesses does not mean lowering standards. “This is not about removing the criteria, it’s about intelligently applying it,” Mackey added.
According to an April report by New Zealand’s Ministerial Advisory Group on Multinational, Serious Organized Crime, criminals are relying on cryptographic ATMs to quickly convert cash into cryptographic areas and send it abroad for drug payments or fraud-related transactions.
Coin ATM radar data shows that more than 220 cryptographic kiosks currently operate nationwide.
Related: Crypto ATM STING reveals elderly widows who lost $282,000 in scams
Global crackdown on crypto ATMs
The crackdown on cryptographic ATMs in New Zealand follows global trends in scrutiny over these machines.
Last month, Australian financial intelligence agency Austrac introduced new rules for Crypto ATM operators, including a $5,000 ($3,250) cap on cash deposits and withdrawals, stricter surveillance and enhanced customer checks amid rising fraud reports.
Meanwhile, Spokane, Washington, has announced a complete ban on crypto ATMs. Spokane City Council will remove existing kiosks, block new kiosks, and cite use in low-income areas, particularly in low-income areas.
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