New Zealand is tightening its grip on illicit financial flows with a sweeping crackdown on crypto ATMs and cross-border cash transfers, signaling a more aggressive stance in the global fight against money laundering and organized crime.

In a statement released Wednesday, Associate Justice Minister Nicole McKee unveiled a major reform to the country’s Anti-Money Laundering and Countering the Financing of Terrorism framework.

One of the measures was a complete ban on cryptocurrency ATMs and a limit of NZ $5,000 on international cash transfers.

Authorities say the reforms are designed to close loopholes exploited by criminal networks, especially in the realm of untraceable digital assets.

“We will also make it more difficult for criminals to convert cash to high-risk assets such as cryptocurrencies by banning crypto ATMs,” McKee said. “This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape.”

Crypto ATMs Under Fire

The move to ban crypto ATMs entirely follows increasing concern that these kiosks are being used as a fast-track for criminals to launder dirty cash.

A recent report from New Zealand’s Ministerial Advisory Group on Transnational, Serious and Organised Crime revealed that crypto ATMs have become a preferred tool for quickly converting cash into crypto for drug deals and fraudulent transfers abroad.

According to Coin ATM Radar, there are currently more than 220 crypto kiosks operating across New Zealand — all of which are now facing shut down.

Government to Expand Financial Intelligence Powers

The New Zealand’s Financial Intelligence Unit (FIU) will also be granted broader surveillance powers to demand information from Banks and other reporting entities related to individuals or transactions flagged as suspicious.

Two bills are already before Parliament and expected to pass before the end of the year. According to McKee, these will not only strengthen AML enforcement but also streamline compliance obligations for businesses.

“We’re removing some of the most burdensome compliance requirements to provide practical relief for law-abiding companies. But this is not about dropping standards—it’s about applying them more intelligently.”

Part of a Global Trend Against Crypto ATMs

New Zealand’s move comes as part of a growing international trend toward tightening controls around crypto ATMs.

Last month, Australia’s financial crime watchdog AUSTRAC imposed new rules on ATM operators, capping cash deposits and withdrawals at AU$5,000, while ramping up monitoring and customer verification protocols in response to escalating scam activity.

In the U.S., Spokane, Washington, went a step further, announcing a full ban on crypto ATMs.

The city’s council ordered the removal of existing machines and barred future installations, citing concerns over fraud targeting vulnerable populations in lower-income areas.