Wise shares fell as much as 19% after the fintech confirmed it is cooperating with Belgian authorities over a money laundering probe into €500 million in transactions.
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Wise shares slide 14% on Belgian money laundering probe into €500M transactions
Wise Group's shares fell as much as 19% before settling 14% lower after the fintech confirmed it was responding to Belgian authorities over transactions worth €500 million tied to a money laundering investigation.
"The requests for information are a normal part of operations and are not, in themselves, indicative of non-compliance with anti-money laundering requirements or of any wrongdoing," a Wise spokesperson said. The Brussels prosecutor's inquiries remain incomplete and no specific findings have been shared with the company to date, Wise added.
The investigation, first reported by the Bureau of Investigative Journalism, relates to transactions worth about €500 million ($543 million) that Belgian authorities flagged last year. Wise, which serves its European and EU customers from its Belgium base, was fined $360,000 in 2022 by Abu Dhabi's financial services regulator for breaching anti-money laundering requirements. The company processes 4.7 million transactions daily for more than 19 million customers worldwide.
The probe adds regulatory uncertainty for Wise just weeks after it shifted its primary listing from London to New York to tap deeper capital markets. About a third of Wise's workforce is dedicated to financial crime prevention, the company said, as it seeks to reassure partners and customers that compliance remains a priority. Continued scrutiny could raise compliance costs and strain relationships with cross-border payment partners, while any adverse findings may trigger fines or operational restrictions in its key European market.
This article is for informational purposes only and does not constitute investment advice.
