New Zealand is set to implement reforms to its anti-money laundering (AML) and countering financing of terrorism (CFT) regime. This includes a nationwide ban on cryptocurrency ATMs and a cap on international cash transfers.
The announcement was made on Wednesday by Associate Justice Minister Nicole McKee, who shared that the upcoming legislation is designed to disrupt criminal financial networks while reducing compliance burdens on legitimate businesses.
“This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape,” said McKee. “We want New Zealand to be one of the easiest places in the world to do legitimate business and one of the hardest for criminals to hide.”
Under the proposed bill, international cash transfers will be capped at NZD $5,000. According to officials, this measure specifically targets illicit cross-border money movements while allowing larger transfers through regulated banking channels.
The legislation will also broaden enforcement powers for police and regulatory agencies and allow the Financials Intelligence Unit to collect more comprehensive financial data on individuals and entities flagged as suspicious. Additionally, the government will begin consultation on a new levy to fund the AML/CFT regime.
The changes follow after an April report from the Ministerial Advisory Group on Transnational, Serious, and Organized Crime identified the misuse of crypto ATMs by criminal syndicates. As per the report, such machines were often getting used to buy cryptocurrency that was then getting transferred offshore within minutes to finance drug smuggling and fraudulent activities.
New Zealand currently hosts over 221 crypto ATMs, according to Coin ATM Radar. The ban may have a giant impact on the country’s crypto infrastructure.
A few industry players expressed their support for the initiative. Janine Grainger, co-founder of local crypto exchange Easy Crypto, welcomed the reforms, emphasizing the importance of customer safety and regulatory clarity.
