The New Zealand government has taken steps to combat financial crime by banning cryptocurrency ATMs and limiting international cash transfers. Associate Justice Minister Nicole McKee announced the measures as part of the AML/CFT reform package.
Ban aims to counter the financing of terrorism
“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. According to officials, the measures aim to shut down key avenues used by organised crime groups to launder proceeds from drug trafficking and fraud.
Financial Intelligence Unit gains new enforcement powers
The Financial Intelligence Unit (FIU) will receive greater authority to conduct proactive financial surveillance as part of the reform package. The FIU will now be able to demand ongoing information from banks and other reporting entities about individuals linked to suspicious activity.
The reforms are designed to enhance targeted enforcement, giving authorities more tools to trace illicit financial flows while minimising disruption for law-abiding businesses.
Government eases compliance burden for legitimate businesses
While cracking down on criminal abuse of the financial system, the government is also pledging to ease compliance burdens for legitimate operators. Two reform bills currently before Parliament are expected to pass by the end of the year.
“These will remove some of the most burdensome compliance requirements, delivering practical relief for businesses by the end of the year,” McKee said. “This is not about dropping standards, it’s about applying them intelligently,” she added.
The government is positioning the policy as a balanced approach that supports law-abiding enterprise while closing loopholes exploited by criminals.
Crypto ATMs identified as high-risk laundering tools
A government advisory report released in April identified crypto ATMs as a fast-growing tool used by criminal networks to quickly convert illicit cash into digital assets, often for cross-border movement.
The machines were reportedly linked to drug payments and fraud-related transactions. Before the ban, more than 220 crypto kiosks operated across New Zealand, according to data from Coin ATM Radar.
New Zealand aligns with global crackdown on crypto kiosks
The New Zealand government followed suit with what other countries are doing in terms of cryptocurrency regulation, one of them being Australia.
Australia’s financial intelligence agency, AUSTRAC recently introduced new regulations on crypto ATM operators, including an AU$5,000 cap on deposits and stricter customer checks.
Spokane, Washington in the US has gone a step further, enacting a full ban and ordering the removal of all crypto ATMs, citing rising scams that disproportionately targeted low-income residents.
The recent ban in Aotearoa enforces a strong law-and-order stance by the government, framed around smart regulation and financial integrity.
“This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape,” McKee said.