Wise faces regulatory action over anti-money laundering controls

• Published On: 30 November 2024 at 20:09

European regulators have placed British money transfer service Wise under a formal rehabilitation plan due to problems with its anti-money laundering systems, the Financial Times reported on Friday.

A study done by the Belgian National Bank, which controls Wise's European operations, discovered that hundreds of thousands of its customers lacked evidence of address.

This evaluation, which occurred in early 2022, was part of a standard check following Brexit, according to Wise.

"We worked closely with our regulator in Belgium and fully implemented their recommendations," Wise told Reuters, confirming the findings.

As part of the Belgian regulators' approved remedial plan, Wise was expected to contact all impacted consumers within weeks and request evidence of their addresses. According to the Financial Times, the plan also required that clients' accounts be frozen if they did not present the required proof.

The Belgian National Bank declined to comment on the subject with the Financial Times and did not immediately respond to a Reuters request for more information.

Wise, founded in 2011, will go public on the London Stock Exchange in 2021 with a purpose to make international money transfers more economical, transparent, and efficient.