Wise entered European remediation plan over AML controls – FT

In early 2022, a review by the National Bank of Belgium concluded that the fintech did not have proof of address for hundreds of thousands of customers, says the FT, citing multiple sources.

The company was instructed to put together a remediation plan requiring it to write to these customers within weeks requesting proof of address. If documents were not provided in time, Wise was required to freeze accounts.

In a statement to the FT, Wise says: “We worked closely with our regulator in Belgium and have fully implemented their recommendations.”

The firm has also fallen foul of money laundering rules in other jurisdictions: In 2022 it was hit with a $360,000 fine by Abud Dhabi’s financial regulator for failing to “establish and maintain adequate AML systems and controls to ensure full compliance with its AML obligations”.