tl;dr
New Zealand has banned cryptocurrency ATMs and imposed a $5,000 cap on international cash transfers to combat money laundering and financial crime. These measures, part of an updated Anti-Money Laundering and Countering the Financing of Terrorism framework, aim to prevent criminals from converting i...
New Zealand has announced a ban on cryptocurrency ATMs alongside a $5,000 cap on international cash transfers as part of a broader government initiative to combat money laundering and organized financial crime. Associate Justice Minister Nicole McKee revealed these measures under the country’s revamped Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.
The government aims to close off pathways criminals use to convert illicit cash into high-risk assets such as cryptocurrencies by eliminating crypto ATMs and limiting large cash transfers abroad. McKee emphasized the balance between targeting criminals and avoiding excessive regulation on legitimate businesses.
In addition to these bans, New Zealand’s Financial Intelligence Unit (FIU) will gain enhanced authority to demand ongoing information from banks and reporting entities about individuals flagged for suspicious activities. Two AML reform bills currently under parliamentary review aim to reduce compliance burdens for businesses without lowering regulatory standards, emphasizing intelligent application rather than relaxed enforcement.
Criminals have increasingly exploited crypto ATMs to quickly convert cash into cryptocurrencies for illicit purposes such as drug payments and fraud. With more than 220 crypto kiosks operating nationwide, these changes seek to disrupt this growing trend based on findings from a recent governmental advisory report.
New Zealand’s crackdown on crypto ATMs aligns with global regulatory trends. Australia recently imposed a $3,250 cap on cash transactions through crypto ATMs, intensified monitoring, and enhanced customer verification amid rising scams. Furthermore, Spokane, Washington, is set to ban crypto ATMs entirely, citing their misuse by fraudsters preying on vulnerable populations in low-income areas.