Belgium investigates Wise Europe over anti-money laundering controls

Belgian authorities are investigating UK-based money transfer firm Wise over suspected money laundering offences linked to its European entity.

In a statement to Electronic Payments International, the Brussels Public Prosecutor’s Office confirmed it is probing Wise Europe over suspicions that criminals may have used Wise accounts to launder money.

The prosecutor’s office said the findings of the probe mainly relate to the use of Wise accounts for criminal purposes. It added there were indications of non-compliance with anti-money laundering legislation, particularly linked to “a lack of proper identification of clients and their activities.”

The suspected money laundering is connected to several alleged underlying offences. These include fraud, corruption and drug trafficking. As part of the investigation, officials are examining whether Wise Europe’s services were used by international criminal organisations.

The prosecutor’s office said the amount involved would exceed half a billion euros ($582.5m) in suspicious transactions.

The investigation began last year and is being handled by the central services of DJSOC, the federal police.

“The case originated from the repeated appearance of Wise in hundreds of criminal files received in Belgium, notably through European Investigation Orders and international letters rogatory,” the prosecutor said in the statement.

The investigation is at an advanced stage and nearing completion. The authority is currently finalising a direct summons before the criminal court and will also transmit the results of its findings to the National Bank.

In a separate stock exchange filing, Wise acknowledged the ongoing probe.

The company said it is cooperating with the Brussels prosecutor’s office but noted enquiries are still incomplete and “no specific findings have been shared with us to date”.

“We will continue to engage with the Brussels prosecutor’s office if and when any specific findings are made available to us,” it added.

Wise also said that requests for information from law enforcement agencies were “a normal part of operations and are not, in themselves, indicative of non-compliance with anti-money laundering requirements or of any wrongdoing”.

The confirmation follows reporting by The Bureau of Investigative Journalism (TBIJ), which said Wise’s platforms were suspected of being linked to about €500m (£432m) in suspicious transactions across 30 European countries.

Wise shares fell 17.5% after the news emerged, BBC reported.

Wise is listed in London and the US, and moved its primary listing to the Nasdaq index last month.

According to the money transfer firm, it supported nearly 19 million people and businesses, processed over $243bn in cross-border transactions.