Wise Faces an AML Investigation Over Alleged Weaknesses in Customer Due Diligence Controls

The UK-based financial technology company Wise is under investigation by Belgian prosecutors over allegations that its platforms may have been used to facilitate money laundering through inadequate customer due diligence and monitoring controls.

According to statements shared with French media, the investigation, focused on Wise’s European operations rather than its UK business, is now at an advanced stage and nearing conclusion. Authorities reportedly suspect that Wise accounts were involved in approximately €500 million in suspicious transactions across multiple European jurisdictions.

The Brussels prosecutor’s office indicated that preliminary findings point to potential non-compliance with anti-money laundering requirements, particularly regarding customer identification and underlying activities. However, Wise has stated that no formal findings have been disclosed and that it continues to cooperate with investigators.

The case has drawn significant market attention, with Wise’s share price falling sharply following the news. Analysts noted that ongoing regulatory uncertainty could impact investor confidence and raise questions about the robustness of fintech compliance frameworks.

This is not the first time Wise has faced regulatory scrutiny. The company has previously been directed to improve compliance processes following concerns raised by the National Bank of Belgium regarding customer verification standards. It has also faced monetary penalties in the United States and the UAE related to AML compliance deficiencies, which the firm says have since been addressed.

Authorities allege that weaknesses in customer onboarding and monitoring processes may have allowed illicit actors to exploit the platform for cross-border financial movement at scale. Wise, however, maintains that regulatory requests are a routine part of operations in the financial services sector and do not in themselves indicate wrongdoing.

Founded in London in 2011, Wise processes millions of transactions daily and serves over 19 million customers globally, positioning itself as a major player in international payments.

For compliance professionals, the case underscores a recurring fintech risk pattern: high-volume cross-border platforms face increasing exposure to layered transaction abuse if customer verification and behavioral monitoring do not keep pace with platform growth.