Global Fintech Wise (LSE:WISE) has reportedly entered European remediation plans over AML (anti- money laundering) issues. The global money transfer company has been ordered by European regulatory authorities to initiate a formal remediation plan regarding issues with its AML controls. This, according to an update from the FT.
A review by the National Bank of Belgium during early 2022 determined that the Fintech company didn’t actually have proof of address for many of its clients, the FT reported while citing sources claiming to be familiar with the matter.
The Fintech firm was then ordered to put in place a remediation plan which then required Wise’s management to write letters to these clients within a matter of a few weeks asking for proof of address. And if such documents were not supplied in a timely manner, then Wise had been asked to freeze such accounts.
In statements shared with the Financial Times, Wise claimed that they had worked cooperatively with their regulator in Belgium and “have fully implemented their recommendations.”
It’s worth noting that Wise had also been flagged for not completely adhering to anti- money laundering guidelines in other nations.
Wise was required to pay a $360,000 penalty back in 2022 by Abu Dhabi’s financial regulator for allegedly failing to establish and maintain “adequate AML systems and controls to ensure full compliance with its AML obligations.”
As covered in October 2024, Wise revealed it expanded its global regulatory footprint as it provides transfers and payments around the world.
Wise, based in the UK, has long been a top Fintech that streamlines the process of moving money around the world – typically faster and less expensive than competitors. New licenses include approval in Brazil, Japan, and Australia. Wise reports that 63% of transfers settle instantly – a competitive advantage.
Wise reports that several digital banking platforms are among its new partners, including Nubank in Brazil, Mox, Standard Chartered’s digital bank in Hong Kong, Moin in South Korea, Allica Bank in the UK, and Qonto in France.
Wise also mentioned its partnership with Swift, which allows payments to be sent instantly without rebuilding Swift’s messaging platform.
