New Zealand Cracks Down on Crypto ATMs and Cash Transfers in Major Anti-Money Laundering Overhaul

Crypto ATMs Banned, International Cash Transfers Capped at $5,000

Hold onto your hats, crypto enthusiasts! New Zealand just dropped a bombshell: they're banning those sketchy crypto ATMs and capping international cash transfers at a measly $5,000. It's all part of a bold new anti-money laundering strategy that's about to shake up the scene.

Associate Justice Minister Nicole McKee didn't mince words when she unveiled these reforms on July 9. "We're gunning for the criminals," she declared, "and we're cutting off their ability to wash their dirty cash through those virtual currency kiosks."

New Zealand's not messing around. They're rolling out a bill that'll give the cops and regulators some serious muscle to crack down on financial shenanigans. Plus, they're beefing up the Financial Intelligence Unit's toolkit to track shady money moves like never before.

McKee's vision? "We want New Zealand to be the easiest place in the world for legit businesses to thrive, and the hardest for crooks to hide." She says this overhaul will slash red tape for the good guys while letting regulators zero in on the real financial threats.

By capping those international cash transfers at $5,000, the powers that be are hoping to slam the brakes on criminal gangs trying to move their ill-gotten gains offshore. Don't worry, though – legit remittances through bank channels are still on the table.

The word from the top is clear: strengthening the AML/CFT framework is the key to curbing the misuse of cryptocurrencies and dodgy cross-border cash flows.

As for when all this goes into effect? Your guess is as good as ours. The authorities are keeping their cards close to the chest on the timeline.

Now, about those crypto ATMs – they've been pegged as a major laundering tool in report after report. A 2024 study from New Zealand's own Ministerial Advisory Group on Transnational, Serious and Organised Crime spilled the beans: criminals are using these kiosks to send funds abroad "in a flash" to fund drug imports and scams.

It's not just a Kiwi problem, folks. Regulators around the globe are getting antsy about these crypto kiosks. The FBI dropped a report linking them to a staggering $246 million in fraud losses across the U.S. in 2024, with over 11,000 complaints pouring in.

Last month, Spokane, Washington, said "enough is enough" and became the first city in the state to ban these machines outright. They gave operators 60 days to yank out over 40 kiosks after a surge in fraud complaints. Turns out, scammers were posing as cops or tax officials to trick victims into using these machines to transfer funds.

Nebraska's not taking any chances either. Earlier this year, they passed the Controllable Electronic Record Fraud Prevention Act, which is a mouthful but means business. State licensing for ATM operators, fee caps at 18%, and daily limits of $2,000 for new users? Check, check, and check. Plus, they're making kiosk operators refund defrauded customers who report scams within 90 days.

Down under in Australia, the financial intelligence agency AUSTRAC is tightening the screws too. In June 2025, they dropped a 5,000 Australian dollar cash cap per transaction, mandatory scam warnings, and beefed-up customer due diligence obligations.