Crypto ATMs Face Nationwide Ban
New Zealand is taking a firm stance against financial crime by banning cryptocurrency ATMs, aiming to block a key channel used by criminals to launder money and finance terrorism. The decision was announced as part of a broader overhaul of the country’s anti-money laundering (AML) and countering financing of terrorism (CFT) framework.
Associate Justice Minister Nicole McKee emphasized the urgency behind the changes:
“We need a smarter, more agile AML/CFT system – one that targets criminals’ ability to launder money.”
Crypto ATMs Linked to Drug-Related Laundering
The move follows a report from Newsroom citing police concerns that crypto ATMs have become a preferred laundering method for drug dealers. Authorities have identified 157 crypto ATMs operating in New Zealand, with several flagged in money laundering investigations.
$5,000 Cap on International Transfers
To further limit the offshore flow of illicit funds, New Zealand will impose a $5,000 cap on international money transfers. The cap is designed to block suspicious transactions often used to move dirty money beyond regulatory reach.
New Bill to Expand Law Enforcement Powers
The government is also preparing a new bill that will expand the enforcement powers of police and financial regulators. The bill aims to give the Financial Intelligence Unit more authority to collect information tied to suspicious financial activity and establish a new financial sanctions supervisory regime.
Balancing Crime Prevention With Compliance Relief
While tightening controls on high-risk areas like crypto transactions and cross-border transfers, the government also plans to ease compliance burdens for low-risk customers and businesses. Two proposed amendments currently under review focus on reducing red tape for legitimate users.
“This government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape,” McKee added.
