New Zealand Implements Ban on Crypto ATMs to Combat Financial Crime

According to Cointelegraph, New Zealand has introduced a ban on cryptocurrency ATMs and imposed a cap on international cash transfers as part of a comprehensive strategy to combat money laundering and organized financial crime. The announcement was made by Associate Justice Minister Nicole McKee, who outlined these measures as part of the government's overhaul of its Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime. The reform package includes a complete ban on crypto ATMs and a $5,000 limit on international cash transfers, both aimed at obstructing channels used by criminals to move illicit funds. McKee emphasized the government's commitment to targeting criminal activities without imposing unnecessary burdens on legitimate businesses. The Financial Intelligence Unit (FIU) will be empowered with new authority to request ongoing information from banks and other reporting entities about individuals flagged for suspicious activities. Two AML reform bills are currently in parliament and are expected to pass by the end of the year. These bills aim to alleviate some of the most onerous compliance requirements, providing practical relief for businesses while maintaining high standards. McKee clarified that the goal is not to lower standards but to apply them more intelligently. An April report by New Zealand’s Ministerial Advisory Group on Transnational, Serious and Organised Crime highlighted the increasing use of crypto ATMs by criminals to swiftly convert cash into cryptocurrency for drug payments or fraud-related transactions. Coin ATM Radar data indicates that over 220 crypto kiosks are operational across the country. New Zealand's actions are part of a broader global trend of increased scrutiny on crypto ATMs. Recently, Australia's financial intelligence agency, AUSTRAC, implemented new regulations for crypto ATM operators, including a 5,000 Australian dollar cap on cash deposits and withdrawals, along with stricter monitoring and enhanced customer checks due to rising scam reports. Similarly, Spokane, Washington, has announced a complete ban on crypto ATMs, with the city council planning to remove existing kiosks and prevent new installations. This decision was made in response to their use by fraudsters to exploit vulnerable residents, particularly in low-income neighborhoods.