NZ First backs tough new rules on cash wages and crypto to fight organised crime

New Zealand First is pressing the Government to adopt sweeping measures against money laundering and gangs, following a ministerial report that urges a ban on cash wage payments in high-risk industries and a nationwide shutdown of cryptocurrency cash machines.

The report, delivered to NZ First Minister Mark Costello, singles out construction, horticulture and hospitality as sectors where cash payments enable tax evasion, migrant exploitation and money laundering. The advisory panel says wages in these industries should be paid only by electronic transfer so that transactions can be traced and audited.

Although most legitimate businesses already rely on digital banking, cash still fuels the black market. Drug deals, illegal firearms sales and under-the-table labour practices rely on anonymous banknotes, giving criminal groups an easy way to move profits.

“Removing cash altogether would hurt organised crime the most,” the panel writes, “but people still need access to cash for lawful reasons.” Instead, the experts propose phasing in tighter rules, modelled on policies in Sweden, Italy and France, where large salaries or all wages must pass through the banking system.

They also recommend banning cash for professional services that are frequently used to launder money, including legal, accounting, real-estate and immigration work, as well as precious-metal and jewellery transactions

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Crypto cash machines under scrutiny

A growing concern for NZ First is the expansion of cryptocurrency ATMs, now found in shopping centres, convenience stores and petrol stations. These machines allow customers to buy digital coins with cash, often without identity checks, making them a fast channel for sending criminal proceeds overseas.

The advisory group describes the devices as a “key laundering mechanism”. It notes that Britain outlawed crypto ATMs in 2022 and urges New Zealand to do the same. Costello agrees, warning that gangs are turning cash into crypto within minutes while law enforcement lags behind.

More tools for police

The panel also calls for stronger powers under the Criminal Proceeds Recovery Act so that officers can freeze assets more quickly, prosecute professional enablers who handle dirty money and obtain real-time access to suspects’ bank accounts under a new form of High Court warrant.

“Organised crime moves at the speed of online banking,” the report says. “Police must be able to act just as fast or offenders will shift profits offshore before investigators can intervene.”

Costello, a former detective who has investigated migrant exploitation, says the proposals match NZ First’s crime-fighting agenda. “Take away the money and you cripple the gangs,” he told the Herald. “Cash is the lifeblood of drugs, fraud and labour abuse, and we intend to cut it off.”

Urgency for reform

This is the second in a series of monthly reports on transnational crime. The first warned that New Zealand is “losing the fight” against organised gangs despite record drug seizures, as wastewater testing shows methamphetamine use doubled in 2024.

The panel’s final recommendations are due in September, but NZ First wants rapid legislative action to disrupt the flow of criminal money. “We cannot wait,” Costello says. “The longer we delay, the more profits gangs funnel offshore and the more harm they inflict here at home.”