Wise investigated by Belgian authorities over money laundering concerns involving 500 million euros
British fintech firm Wise is under investigation by Belgian prosecutors on suspicion of failing to comply with anti-money laundering rules, with 500 million euros in transactions under examination.
Wise investigated by Belgian authorities over money laundering concerns involving 500 million euros
British money transfer company Wise has confirmed it is cooperating with Brussels prosecutors, who are examining whether its platform was exploited to launder proceeds from fraud, corruption and drug trafficking.
Brussels prosecutors opened an investigation last year after Wise accounts appeared in hundreds of cross-border mutual legal assistance requests from more than 30 European countries, according to a report by the Bureau of Investigative Journalism (TBIJ) cited by The Guardian.
The transactions under examination amount to approximately 500 million euros (433 million pounds). Belgian authorities, where Wise manages its European operations, are investigating "indications of non-compliance with anti-money laundering legislation".
Wise, which processes 4.7 million transactions per day for 19 million customers, stated it was "currently working with Brussels prosecutors to respond to questions concerning our activities, as we regularly do with regulators and law enforcement authorities". The company added that the prosecutors' requests are still ongoing and no specific conclusions have been communicated to it to date.
In a stock market statement, Wise emphasised that approximately one third of its global workforce is dedicated to fighting financial crime. The company claimed that it verifies customer identity before opening an account, monitors transactions in real time, terminates suspicious accounts and proactively reports suspicious activities to law enforcement.
The company's shares, which is headquartered in London and valued at over 8 billion pounds, fell by nearly 20 per cent at one point on Monday before closing down 8 per cent.
The investigation adds to regulatory pressure on Wise. In 2024, co-founder and chief executive Kristo Käärmann was fined 350,000 pounds by British authorities for deliberately failing to inform the London financial regulator of "significant tax issues". Last month, the company moved its primary stock market listing from London to the United States.
Source: The Guardian UK