New Zealand has announced a ban on cryptocurrency ATMs and a cap on international cash transfers, moves officials say are part of a broader effort to disrupt money laundering and organized financial crime.
In a Wednesday announcement, Associate Justice Minister Nicole McKee unveiled the measures as part of the government’s overhaul of its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime.
The reform package includes banning crypto ATMs entirely and introducing a $5,000 limit on international cash transfers. Officials say both measures are designed to block avenues used by criminals to move illicit funds.
“We will also make it more difficult for criminals to convert cash to high-risk assets such as cryptocurrencies by banning crypto ATMs,” McKee said in a statement. “This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape.”
Related: Number of crypto ATMs installed nears its all-time record
New Zealand to boost financial surveillance
The Financial Intelligence Unit (FIU) will also be granted new powers to demand ongoing information from banks and other reporting entities regarding individuals flagged for suspicious activity.
Two AML reform bills are already in parliament, expected to pass before year’s end. These will “remove some of the most burdensome compliance requirements, delivering practical relief for businesses by the end of the year,” McKee said.
The government said that easing compliance for law-abiding businesses does not mean lowering standards. “This is not about dropping standards, it’s about applying them intelligently,” McKee added.
According to an April report by New Zealand’s Ministerial Advisory Group on Transnational, Serious and Organised Crime, criminals have increasingly relied on crypto ATMs to quickly convert cash into crypto and send it abroad for drug payments or fraud-related transactions.
Coin ATM Radar data shows more than 220 crypto kiosks are currently operating across the country.
Related: Crypto ATM sting uncovers elderly widow who lost $282K in scam
Global crackdown on crypto ATMs
New Zealand’s crackdown on crypto ATMs follows a global trend of scrutiny around these machines.
Last month, Australia’s financial intelligence agency, AUSTRAC, introduced new rules for crypto ATM operators, including a 5,000 Australian dollar ($3,250) cap on cash deposits and withdrawals, stricter monitoring, and enhanced customer checks, amid rising scam reports.
Meanwhile, Spokane, Washington, has announced a complete ban on crypto ATMs. Spokane City Council will remove existing kiosks and block new ones, citing their use by fraudsters to target vulnerable residents, particularly in low-income neighborhoods.
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