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Wise Faces £1bn Value Plunge Amid Probe
1 Jun
Summary
- Wise's value dropped over £1bn due to an investigation.
- Prosecutors in Belgium are investigating suspicious payments.
- The company is cooperating with authorities in the inquiry.
A British money transfer business has seen its market value plummet by more than £1bn amid an ongoing investigation into suspicious payment activities. The company, Wise, announced its cooperation with prosecutors in Belgium concerning allegations of its payment apps being involved in transactions around €500m (£432m) linked to criminal elements.
Shares of the London and New York-listed financial technology firm experienced a decline of up to 15% following Wise's disclosure of responding to official inquiries. Wise affirmed its routine collaboration with regulators and law enforcement, noting that the investigation is incomplete and no specific findings have been disclosed to them.
The Bureau for Investigative Journalism reported that Wise has been queried by European prosecutors regarding potential non-compliance with anti-money laundering legislation. This investigation follows alleged findings by European police forces linking Wise accounts to hundreds of cross-border criminal cases in 30 countries.
Wise, previously known as TransferWise, specializes in making international money transfers more affordable. Its digital accounts are particularly popular among individuals sending money to their home countries who may face challenges with traditional banking. The current inquiry pertains to Wise's European operations, not its UK business.
This is not the first time Wise has faced scrutiny regarding its payment controls. Last July, the company settled claims in the US for $4.2m (£3.4m) over alleged breaches of the Bank Secrecy Act and anti-money-laundering laws.
