Wise Faces Probe Amid Money Laundering Scrutiny

Belgian prosecutors have confirmed to French media that they are investigating the UK-based money transfer firm Wise over allegations that criminals exploited its accounts for money laundering. The inquiry specifically targets Wise’s European operations, excluding its UK business, and authorities indicate the probe is approaching its conclusion.

The confirmation follows a report by The Bureau of Investigative Journalism (TBIJ), which alleged that Wise’s platforms were linked to approximately €500 million (£432 million) in suspicious transactions across 30 European nations. Following the disclosure, shares in the dual-listed company plummeted by 17.5%.

A spokesperson for the Brussels prosecutor’s office described the investigation as being in an "advanced stage." The spokesperson noted that the case centers on the misuse of Wise accounts for illicit activities, citing potential breaches of anti-money laundering laws, particularly regarding the failure to properly identify customers and monitor their activities.

In response, Wise stated it is cooperating with the Brussels prosecutor’s office to address inquiries, a standard procedure for the firm when dealing with regulators and law enforcement. However, the company emphasized that "no specific findings have been shared with us to date," adding that it would be speculative to comment on unverified allegations. Wise characterized requests for information from authorities as a routine part of operations, asserting that such inquiries do not inherently indicate non-compliance with anti-money laundering standards or any misconduct.

TBIJ noted that the Belgian authorities initiated their investigation into Wise last year. Established in London in 2011, Wise facilitates cross-border payments and serves over 19 million customers globally. The firm reports processing roughly 4.7 million transactions daily. While originally headquartered in the UK, Wise moved its primary stock listing to the US Nasdaq index last month, though its European business remains based in Belgium to serve the EU market.

Market analysts highlighted the potential long-term impact of the news. Dan Coatsworth, head of markets at AJ Bell, observed that the investigation temporarily erased more than £1 billion from Wise’s market value on Monday. "Until any findings are published, this issue is likely to hang like a heavy dark cloud over the business, which has had previous brushes with regulatory authorities," Coatsworth said. He warned that if oversight failures are confirmed, substantial fines could result, though damage to customer trust and brand integrity might prove more detrimental.

Wise has previously faced regulatory scrutiny. In 2024, the Financial Times reported that the National Bank of Belgium had identified missing proof-of-address documentation for hundreds of thousands of customers, prompting Wise to improve its processes. Additionally, the firm paid $4.2 million (£3.1 million) in fines last year to six US states for anti-money laundering violations and $360,000 to Abu Dhabi’s financial services regulator in 2022. In each instance, Wise maintained that it had resolved the regulators' concerns.

On Monday, the company reiterated its commitment to security, stating that it takes financial crime "extremely seriously." A spokesperson noted that the firm contends with "the reality of increasingly sophisticated bad actors attempting to exploit our platform" and highlighted that approximately one-third of its global workforce is dedicated to protecting customers from such threats.

Source: BBC News Generated at: 2026-06-01 16:44:16 UTC