New Zealand Moves to Ban Crypto ATMs

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  • New Zealand plans to ban all crypto ATMs, part of a major anti–money laundering and terrorism financing overhaul
  • The government also plans to cap international cash transfers at NZ$5,000 per transaction
  • Law enforcement has received expanded enforcement powers and real‑time data access from financial institutions to aid in its efforts

New Zealand’s Justice Ministry has rolled out sweeping reforms to tighten financial crime controls, including banning crypto ATMs, limiting offshore cash transfers and boosting enforcement tools for police and the Financial Intelligence Unit (FIU). According to Associate Minister Nicole McKee, the initiative is squarely aimed at disrupting criminal networks and protecting honest New Zealand businesses. The reforms are packaged alongside measures to ease compliance for low‑risk entities, promising clarity and efficiency for legitimate firms and making life harder for those seeking to launder cash and finance terrorism.

New Zealand Trying to Strike a Balance

Associate Minister Nicole McKee announced the changes yesterday, emphasizing that the government is “targeting criminals, not tying up legitimate businesses in unnecessary red tape.” Part of this move includes the banning of crypto ATMs, which the government has concluded are being exploited to funnel cash into digital assets, which is then whisked offshore to fund drug trafficking, ransomware, and investment fraud.

McKee described the ban as “a critical step” to disrupt “criminal organisation[s]” using these machines to quickly obscure illicit cash streams, adding that the ban will help regulators “crack down on those involved in money laundering” while simplifying compliance for low-risk businesses.

New Zealand joins the UK and Australia in cracking down on crypto ATMs, although its ban is more in line with the Spokane City Council, which announced a total ban last month.

International Cash Transfer Limit

Alongside the banning of crypto ATMS is a NZ$5,000 (approx. US$3,000) cap on individual overseas cash transfers, which aims to choke off a direct channel criminals use to move illicit funds. Simultaneously, the FIU is being empowered “to order banks and other businesses subject to the AML/CFT Act to provide ongoing relevant information on persons of interest,” enhancing real‑time data gathering for investigative purposes.

McKee assures that while enforcement is being stepped up, compliance burdens on legitimate operators will ease: address-verification requirements will be dropped for low-risk customers, and due diligence for low‑risk trusts is to be relaxed. “This is not about dropping standards, it’s about applying them intelligently,” she stated.

Industry consultation on a new AML/CFT levy and national strategy is due to begin shortly, which, if passed, will mark New Zealand as a regional leader in flexibly combatting financial crime.

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