UK fintech giant Wise under investigation over lax money laundering controls
- Marijan Hassan - Tech Journalist
- 3 days ago
- 2 min read
British fintech company Wise is facing mounting regulatory scrutiny after Belgian authorities launched an investigation into alleged failures in the company’s anti-money laundering controls. The probe centers on claims that criminal organizations may have used Wise’s platform to move illicit funds tied to fraud, corruption, illegal gambling, and drug trafficking across Europe.
The €500 papertrail
According to Belgian prosecutors, the investigation involves more than €500 million in suspicious transactions linked to Wise Europe, the company’s Belgium-based European subsidiary. Authorities say the inquiry began in 2025 after Wise accounts repeatedly appeared in hundreds of international requests for criminal investigative assistance from more than 30 European countries.
The Brussels prosecutor’s office stated that investigators are examining whether Wise failed to properly identify customers and monitor account activity in compliance with anti-money laundering regulations. Officials reportedly described the investigation as being in an “advanced stage” and nearing completion.
Wise denies wrongdoing
Wise has denied any wrongdoing and says it is fully cooperating with authorities. In statements issued to investors and the media, the company emphasized that requests for information from regulators and law enforcement agencies are routine for global financial platforms. Wise also stated that prosecutors have not yet shared any formal findings or conclusions with the company.
The fintech giant says it has invested heavily in fraud detection systems, customer verification procedures, and compliance operations. The company processes roughly 4.7 million transactions daily and serves more than 19 million customers globally.
Shares tumble following investigation reports
News of the investigation triggered a sharp market reaction. Wise shares plunged as much as 20% during trading after reports of the probe became public, with investors expressing concern about potential legal and regulatory consequences.
Analysts say the case poses a reputational challenge for Wise, which has built its brand around fast, transparent, and low-cost international money transfers.
Previous compliance concerns
The current investigation follows earlier regulatory criticism of Wise’s anti-money laundering practices. In 2024, reports emerged that European regulators had forced Wise into a formal remediation program after compliance reviews allegedly found the company lacked proof-of-address documentation for hundreds of thousands of customers.
Separately, Wise’s U.S. operations previously faced penalties tied to compliance and remittance-related issues.
Growing pressure on fintech firms
The Wise investigation reflects increasing pressure on fintech companies to strengthen anti-money laundering systems as regulators intensify scrutiny of digital payment platforms.
Unlike traditional banks, fintech firms often prioritize rapid onboarding and seamless cross-border transfers, factors regulators warn can create vulnerabilities if customer verification and transaction monitoring systems are insufficient.
Several major European fintech firms, including digital banking platforms and online payment providers, have faced similar regulatory actions in recent years over compliance shortcomings.
What happens next
Belgian prosecutors have not yet announced formal charges, but reports indicate authorities may eventually seek criminal court proceedings if investigators conclude Wise violated anti-money laundering laws. For now, the company remains operational while continuing to cooperate with investigators.
