New Zealand is planning to introduce measures to combat money laundering and terrorist financing, through the proposed ban on cryptocurrency ATMs and the introduction of a limit on international cash transactions.
According to an announcement today by Associate Minister for Justice, the Honourable Nicole McKee, the government intends to bring forward new legislation to significantly strengthen law enforcement and regulatory powers.
Banning Crypto ATMs
To combat 'serious financial crime', the national anti-money laundering and terrorist financing (AML/CFT) regulatory framework is being completely overhauled, with the aim of making it more difficult for illicit funds to enter the digital economy.
According to Minister McKee, the new strategy will provide businesses with greater clarity and uniformity, while maintaining a strong focus on preventing abuse of the financial system by illegal activities.
McKee said in a statement:
"This government is serious about targeting criminals, not trapping legitimate businesses in unnecessary red tape...[We intend] to establish a new financial sanctions oversight regime and initiate discussions on a sustainable contribution to fund improvements to the AML/CFT system."
The total ban on ATMs for cryptocurrencies is a key element of the government's reform package. According to the authorities, money laundering is facilitated by the frequent use of these devices to convert illicit cash into digital assets.
McKee confirmed that decommissioning these devices would hinder one of the most widespread methods of money laundering through cryptocurrencies. New Zealand currently has 221 active crypto ATMs, ranking it eighth in the world; the ban is expected to completely dismantle this network.
This decisive decision is in line with global initiatives to restrict access to crypto ATMs to counter illicit financial flows. While Australia and several US states, including North Dakota, have tightened regulation to combat the fraud and abuse associated with these machines, Germany, for example, seized $28 million from illegal crypto ATMs in 2024.
Restrictions on Money Transactions
In addition to banning crypto ATMs, New Zealand intends to limit international cash transactions to a maximum of $5,000. By limiting the amount that can be transferred abroad in a single transaction, this measure aims to make it more difficult for criminal organisations to move large sums covertly.
"The Financial Intelligence Unit (FIU) will be able to request important contextual information from other businesses about the financial activities of subjects of interest. This will allow for the development of more effective financial intelligence to bring criminals to justice," McKee reiterated.
The proposed reforms also allow authorities to reallocate resources to riskier entities by changing some AML/CFT compliance requirements for legitimate businesses. McKee emphasised that these adjustments are designed to bring New Zealand in line with international standards and strengthen the country's ability to effectively combat financial crime.
