New Zealand has announced a comprehensive overhaul of its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime, culminating in a ban on all cryptocurrency ATMs and a cap on international cash transfers at $5,000.
Associate Justice Minister Nicole McKee revealed the measures Wednesday, stating they are intended to dismantle criminal pathways for moving illicit funds. The reforms target high-risk activities, particularly emphasizing the dangers posed by crypto ATMs.
“We are banning crypto ATMs because this makes it harder for criminals to convert cash to high-risk assets such as cryptocurrencies,” McKee stated. Her government’s approach aims to dismantle criminal networks while shielding legitimate businesses from burdensome, yet necessary, regulatory measures.
Boosting Financial Surveillance
Alongside the ATM ban and transfer limit, New Zealand’s Financial Intelligence Unit (FIU) will gain authority to demand ongoing information from banks and other entities regarding flagged individuals.
The AML reforms are being fast-tracked through Parliament. Two separate bills are expected to pass by year-end, easing “painful compliance burdens” for law-abiding businesses, according to McKee. Yet, the government firmly stated this does not equate to lowering standards. “This is not about dropping standards, it’s about applying them intelligently,” she clarified.
Motivation behind the Ban
The rationale for targeting crypto ATMs is strongly supported by intelligence. An April 2024 report from New Zealand’s Ministerial Advisory Group on Transnational, Serious and Organised Crime linked their proliferation to illegal activities. Specifically, criminals exploit these machines to rapidly convert cash proceeds from illicit transactions like drug sales or fraud into cryptocurrency for international movement.
Data from Coin ATM Radar confirms the prevalence of this equipment in New Zealand, with over 220 crypto ATMs currently in operation.
Related: Cryptocurrency ATMs installed number nears all-time record
In line with Global Crackdown
New Zealand’s clampdown on crypto ATMs appears part of a broader international trend targeting these machines.
In recent months, Australia’s AUSTRAC introduced stricter rules for crypto ATM operators, including a $5,000 limit per transaction, alongside enhanced monitoring and customer due diligence following a wave of scams. Similarly, the city of Spokane, Washington, recently voted to ban crypto ATMs altogether, citing their role in targeting vulnerable residents with financial exploitation.
Related: Elderly widow loses $282,000 after falling victim to crypto ATM scam
