Money transfer giant Wise has been instructed by European regulators to implement a formal remediation plan addressing deficiencies in its anti-money laundering (AML) controls, as reported by the Financial Times.
In early 2022, a review conducted by the National Bank of Belgium found that the fintech company lacked proof of address for hundreds of thousands of customers. As a result, Wise was directed to create a remediation plan, which required the company to contact these customers within weeks to request proof of address. If customers failed to provide the necessary documentation within the specified timeframe, Wise was mandated to freeze their accounts.
Responding to the Financial Times, Wise stated, “We worked closely with our regulator in Belgium and have fully implemented their recommendations.”
The company has faced similar issues in other jurisdictions as well. In 2022, Wise received a $360,000 fine from Abu Dhabi’s financial regulator for not adequately establishing and maintaining AML systems and controls to ensure compliance with its AML obligations.