New Zealand Bans Crypto ATMs, Limits Cash Transfers to $5,000 in Anti-Money Laundering Push

New Zealand has implemented stringent measures as part of its new anti-money laundering policy, including a ban on cryptocurrency ATMs and a limit on international cash transfers. The government aims to prevent criminals from converting physical cash into cryptocurrency assets, which could be used for illicit activities. The ban on crypto ATMs is part of a broader effort to strengthen enforcement actions against financial crime.

Nicole McKee, the associate justice minister, announced that the cabinet has agreed to introduce legislation that will enhance the powers of police and regulators. This new bill focuses on cracking down on money laundering operations across various financial sectors. Additionally, a new financial sanctions supervisory regime will be established under these reforms.

The government has set a $5,000 upper limit on international cash transfers per transaction. This restriction is designed to reduce the ability of criminal organizations to move funds offshore through cash channels. The limit applies to all international money transfer services operating in New Zealand.

These measures are part of a broader effort to create a more efficient and agile anti-money laundering and countering financing of terrorism (AML/CFT) system. The government aims to balance crime prevention with the need for efficient business operations. For lower-risk clients, the government intends to eliminate the need for address verification and relax due diligence requirements for lower-risk trusts.

Two amendment measures in Parliament will relieve businesses of onerous compliance obligations. The legislation is set to deliver practical relief by the end of 2025 for affected sectors, allowing businesses to focus resources on actual risks rather than low-risk client paperwork.

Cryptocurrencies are not directly regulated as financial products in New Zealand. Instead, the government has increased oversight through broader fintech and anti-money laundering legislation. Digital assets are recognized as property for tax purposes rather than legal tender. The Taxation Act 2025 implements the OECD Crypto-Asset Reporting Framework requirements, mandating that crypto asset service providers report transaction data to the Inland Revenue Department. Full implementation begins in April 2026, with preparation and compliance underway during 2025.

The government will also engage with industry stakeholders to guide the formulation of a new national strategy. The levy framework will undergo consultation processes with affected business sectors. These measures aim to target criminals while maintaining a focus on legitimate business operations without imposing excessive compliance burdens.