“Criminals can use these ATMs to purchase cryptocurrency and transfer that cryptocurrency within minutes to offshore criminals to fund drug imports or to make payments associated with scams.”
The independent advisory group noted these ATMs were made illegal in the United Kingdom in 2022 and recommended virtual current ATMs be banned “as a critical step in disrupting organised crime operations”.
“This would remove a key laundering mechanism, close a significant loophole in the financial system, and hinder the ability of transnational organised crime to convert and move profits invisibly.”
Police also warned of these ATMs in its 2024 National Risk Assessment, saying drug offenders used them to “launder cash from drug sales”. Fraudsters also convinced New Zealanders to purchase crypto for investment in fraudulent schemes, police said.
“Romance scam victims purchased cryptocurrency to send to mule wallets, or to the scammer’s wallets in other jurisdictions.”
McKee said the Government is “serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape” and will introduce a new piece of legislation to strengthen enforcement powers for police and regulators to crack down on people involved in money laundering.
“It will also establish a new financial sanctions supervisory regime and initiate engagement on a sustainable levy to fund [anti-money laundering/combating the financing of terrorism (AML/CFT)] system improvements,” she said.
“The new approach will deliver more clarity and consistency for businesses while maintaining a strong focus on preventing criminal misuse of the financial system.”
To reduce the ability of criminal organisations to move funds offshore, the Government will also introduce an upper limit on how much cash can be sent via international fund transfer services. This will be set at $5000 per transfer.
People will still be able to transfer more than $5000 overseas for legitimate reasons in other ways, like via electronic bank account transfers.
The Government says the intent of this change is to make it harder for criminals to take advantage of international fund transfer services by using the cash proceeds of crime to facilitate international payments.
“We will also enable the Financial Intelligence Unit [FIU] to order banks and other businesses subject to the AML/CFT Act to provide ongoing relevant information on persons of interest,” McKee said.
“The FIU will also be able to order the production of important contextual information from other businesses on the financial activities of persons of interest. This will enable the more effective development of the financial intelligence needed to bring the criminals to justice.”
McKee has already made two announcements this week relating to anti-money laundering. On Monday, she said changes would be made to legislation to make it easier for parents to open bank accounts for their children, while yesterday she said requirements around family trusts would be simplified.
Jamie Ensor is a political reporter in the NZ Herald press gallery team based at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office. In 2025, he was a finalist for Political Journalist of the Year at the Voyager Media Awards.
