New Zealand to Ban Crypto ATMs Under AML Reforms

New Zealand is tightening its anti-money laundering (AML) and counter-terrorism financing (CFT) regulations with sweeping reforms. Associate Justice Minister Nicole McKee announced a nationwide ban on cryptocurrency ATMs and a NZD $5,000 cap on international cash transfers. The measures aim to disrupt criminal financial networks while minimizing red tape for legitimate businesses.

The proposed legislation grants expanded enforcement powers to police and regulatory agencies. New Zealand's Financial Intelligence Unit will gain broader authority to collect financial data on suspicious entities. A consultation process for funding the AML/CFT regime through a new levy is underway.

These changes follow an April report from the Ministerial Advisory Group on Transnational, Serious, and Organized Crime. The government's approach reflects a balancing act: maintaining business-friendly policies while creating barriers for illicit financial flows. Cryptocurrency transactions now face heightened scrutiny as part of this strategic shift.