Wise, the UK-based international money transfer service and a prominent player in the London fintech scene, has confirmed it is responding to inquiries from Belgian prosecutors regarding money laundering, leading to a sharp decline in its share price.
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 added that the inquiries are still ongoing and no specific findings have been shared yet.
Shares in the company fell nearly 20% at one point on Monday before closing down 8%, as investors reacted to the official confirmation of discussions with the Belgian prosecutor's office.
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 have been "used by criminals to launder the proceeds of fraud, corruption and drug trafficking."
According to the report, prosecutors in Belgium opened the investigation last year based on evidence that Wise accounts had been involved in hundreds of requests for cross-border assistance in criminal proceedings from more than 30 European countries. The transactions under scrutiny amount to €500 million (£433 million).
Belgian authorities have indicated they are investigating "indications of non-compliance with anti-money laundering legislation," according to the report. The Guardian has contacted Belgium's central directorate for the fight against serious and organised crime (DJSOC) for comment.
In its statement, Wise emphasized its commitment to compliance: "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 noted that it verifies customers before account opening and monitors hundreds of data points in real time, with teams reviewing transactions, offboarding customers when necessary, and proactively reporting suspicious activity to law enforcement.
Wise, formerly known as TransferWise, specializes in rapid cross-border payments. Its 2021 float made billionaires of its co-founders. As of last month, London hosts only 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."
