Wise, the UK-based international money transfer service and a prominent player in the London fintech scene, has confirmed it is cooperating with Belgian prosecutors investigating money laundering, causing its shares to drop sharply.
Wise Responds to Belgian Inquiry
In a statement to the stock market, Wise said it is “currently working with the Brussels prosecutor to respond to queries about our business, as we routinely do with regulators and law-enforcement authorities.” The company noted that the inquiries are incomplete and no specific findings have been shared yet.
Shares in Wise plunged by more than 10% in early afternoon trading as investors digested the official confirmation of discussions with the Belgian prosecutor’s office.
Background of the Investigation
The London-based firm, which serves 19 million customers, processes 4.7 million transactions daily, and is valued at over £8 billion, issued the statement in response to a report by the Bureau of Investigative Journalism (TBIJ). The report alleged that Belgian authorities are investigating whether Wise accounts had been “used by criminals to launder the proceeds of fraud, corruption and drug trafficking.”
Prosecutors in Belgium reportedly opened the investigation last year, based on evidence that Wise accounts had appeared in hundreds of requests for cross-border assistance in criminal proceedings from more than 30 countries across Europe. The transactions under scrutiny amount to €500 million (£433 million).
According to the report, authorities in Belgium—where Wise’s European operations are headquartered in Brussels—have cited “indications of non-compliance with anti-money laundering legislation.”
Wise’s Defense and Operations
Wise emphasized its commitment to compliance, stating: “Like every financial institution, we face the reality of increasingly sophisticated bad actors attempting to exploit our platform, and we continually invest in tech-enabled systems and teams to stay ahead of ever-evolving threats.”
The company detailed its anti-money laundering measures: “We start by verifying customers before they open an account and continue monitoring hundreds of data points in real time as customers use our products, with teams reviewing transactions, offboarding customers when needed, and proactively reporting suspicious activity to law enforcement.”
Wise added that roughly one-third of its global team is dedicated to protecting customers from financial crime.
Formerly known as TransferWise, the company specializes in rapid cross-border payments. Its 2021 float made billionaires of its co-founders. As of last month, London only hosts the company’s secondary listing after Wise moved its primary trading location to the United States.
In 2024, Wise’s co-founder and CEO, Kristo Käärmann, was fined £350,000 for deliberately failing to inform the City regulator of significant tax issues.
