Tag: Wise money laundering

Wise Faces Investigation Over Money Laundering Concerns in Europe Regulatory scrutiny in Belgium UK-based money transfer company Wise is under investigation in Belgium over allegations that its accounts may have been used for money laundering. Belgian prosecutors said the case focuses on Wise’s European operations rather than its UK business. They also noted that the investigation is close to completion and now at an advanced stage. A spokesperson for the Brussels prosecutor’s office said there are signs of possible anti money laundering failures. These include concerns about weak customer verification and unclear understanding of user activity. Wise has not been told of any final findings yet. Wise response to allegations Wise confirmed it is cooperating with the Brussels prosecutor’s office. The company said it regularly works with regulators and law enforcement agencies. It also stated that no specific findings have been shared so far. Because of this, it said any conclusions at this stage would be speculative. Wise added that information requests from authorities are part of normal financial operations. It said these requests do not automatically indicate wrongdoing or compliance failures. Reports of suspicious transactions According to reporting from The Bureau of Investigative Journalism, Wise platforms may have been linked to about €500 million in suspicious transactions. These transactions reportedly span around 30 European countries. The investigation is believed to have started last year and has been progressing since then. Market impact and investor reaction News of the investigation hit Wise’s market value hard. Shares dropped by around 17.5 percent, briefly wiping more than £1 billion from its valuation. Market analyst Dan Coatsworth from AJ Bell said uncertainty around the case could weigh on the company. He noted that regulatory concerns could affect both financial penalties and customer trust. Previous regulatory issues Wise has faced compliance issues before. In 2024, reports said Belgian regulators found gaps in customer verification, including missing proof of address for many users. The company was asked to improve its processes. In the United States, Wise was fined $4.2 million by several state regulators over anti money laundering issues. In Abu Dhabi, it also received a smaller fine of $360,000 for compliance failures. Wise said in each case that it worked to fix the issues raised by regulators. Company position and operations Wise was founded in London in 2011 and now serves more than 19 million customers worldwide. It processes millions of transactions every day. The company is listed in both London and the United States and recently moved its primary listing to Nasdaq. Its European operations are based in Belgium. Wise said it takes financial crime prevention seriously. Around one third of its global workforce focuses on fraud and compliance protection.
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Wise Faces Investigation Over Money Laundering Concerns in Europe

Regulatory scrutiny in Belgium UK-based money transfer company Wise is under investigation…

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