New Zealand Moves to Ban Crypto ATMs in AML Overhaul

New Zealand's Ministry of Justice is cracking down on financial crime with a sweeping reform of its anti-money laundering (AML) and counter-terrorism financing (CFT) framework. Associate Justice Minister Nicole McKee confirmed plans to introduce legislation that would ban cryptocurrency ATMs—a tool authorities say is frequently exploited to convert illicit cash into digital assets.

The proposed ban forms part of a broader strategy to tighten financial regulations while reducing compliance burdens for legitimate businesses. McKee emphasized the government's focus on targeting criminal activity without stifling innovation. A new financial sanctions supervisory regime is also in the works, alongside discussions on sustainable funding for AML/CFT system improvements.

Crypto ATMs have drawn particular scrutiny as a weak point in the financial system's defenses. Their removal aims to disrupt a common money laundering channel while maintaining New Zealand's reputation as a transparent jurisdiction for digital asset activity.