New Zealand Bans Crypto ATMs, Caps International Transfers at $5,000

The New Zealand government has placed a ban on crypto ATMs, alongside steps to combat serious financial crimes. The move reflects a broader trend to protect crypto users and citizens.

According to Associate Justice Minister Nicole McKee, the government is committed to cracking down on criminal activity without burdening law-abiding businesses with excessive regulation.

FIU Grants Authority to Request Data from Banks

McKee revealed that the cabinet has given the green light to a new bill that will boost the ability of police and regulators to take firm action against those engaged in money laundering.

“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. By cutting unnecessary red tape, we’re giving honest businesses room to grow, while sharpening our focus on serious threats,” McKee said.

Under the new measures, the Financial Intelligence Unit (FIU) will have the authority to request continuous, relevant information from banks and AML/CFT-covered businesses regarding persons of interest.

Additionally, the initiative will enhance the production of actionable financial intelligence. It will help authorities pursue and prosecute those involved in criminal activities.

Furthermore, the FIU will be empowered to mandate the disclosure of relevant contextual information from non-financial entities regarding the financial conduct of individuals targeted for investigation.

Government Caps International Transfers at $5,000 

To reduce illegal funds transfer, the government has limited intentional transactions to $5,000 per transfer. The strategy aims to make it difficult for criminals to convert funds into crypto assets. 

“An upper limit will be set on how much cash can be transferred internationally ($5,000 per transfer), reducing the ability of the criminal organisation to move its funds offshore,” the government wrote.

According to the announcement, the new approach ensures both clarity and integrity in the financial system. Meanwhile, the global economic and regulatory environment has undergone considerable transformation since 2019. While enabling New Zealand businesses to operate efficiently, the government stated that it will need a more sophisticated AML/CFT system.

As part of broader reforms, McKee earlier announced the intention to remove address verification requirements for many customers deemed low-risk and to ease due diligence obligations for low-risk trusts.

Ultimately, the reform allows for more strategic deployment of compliance resources. It ensures attention is concentrated on higher-risk entities rather than routine verification for low-risk individuals.

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