New Zealand has introduced a ban on all cryptocurrency ATMs and imposed a $5,000 cap on offshore cash transfers as part of enhanced measures against money laundering and terrorism financing. These sweeping reforms target vulnerabilities within the nation’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) framework.
The cryptocurrency ATM prohibition specifically addresses high-risk cash-to-digital asset conversions, which authorities identify as a conduit for financial crime. Simultaneously, the new $5,000 limit on overseas cash transfers aims to obstruct illicit capital movement. Enforcement will be managed by the Financial Intelligence Unit (FIU), which will implement stricter regulatory oversight to ensure compliance with AML/CFT standards.
This policy aligns with international regulatory trends, mirroring actions in jurisdictions like Australia and Spokane, Washington, where crypto ATMs also face restrictions due to fraud and money laundering concerns. The reforms strike a balance by focusing regulatory scrutiny on high-risk transactions while aiming to maintain efficiency for legitimate businesses.
The measures signal New Zealand’s commitment to reinforcing its financial ecosystem resilience and adhering to global AML/CFT standards through targeted interventions against identified systemic weaknesses.