Wise Plc, the London-based payments company, is currently facing serious compliance issues. Authorities in Belgium are investigating potential money laundering activities involving the platform, which has resulted in noticeable market repercussions.
On June 1, Wise's stock saw a dramatic drop of up to 19% in intraday transactions, marking its worst one-day performance since it became publicly traded in 2021. Although there was some recovery, the shares were still trading at a 13% deficit by mid-morning.
#What are Belgian authorities investigating?
Last year, the Brussels Public Prosecutor’s Office initiated an inquiry into Wise. This investigation centers around claims that certain Wise accounts are linked to suspicious transactions surpassing €500 million, equivalent to about $582 million. These transactions are allegedly tied to various serious crimes, including fraud and drug trafficking, stretching across more than 30 nations. The investigation was prompted by cross-border requests indicating that Wise accounts may have acted as channels for these dubious funds.
Wise has acknowledged its cooperation with the inquiry but has also emphasized that prosecutors have yet to disclose any specific findings.
#Is there a history of compliance issues?
This incident is part of a larger pattern for Wise. In 2022, the National Bank of Belgium ordered Wise to address shortcomings in its customer due diligence processes. Additionally, in July 2025, the company reached a settlement with six states in the U.S., paying $4.2 million to rectify deficiencies in its anti-money laundering initiatives.
Other financial institutions, such as ING and Worldline, have also faced scrutiny in Belgium, indicating a broader regulatory focus on payment firms operating within Europe’s financial centers.
#What should investors consider?
For investors, the implications of this compliance challenge are significant. Wise has been actively recruiting for positions related to stablecoins, hinting at plans to expand its offerings into digital asset services. However, with the ongoing regulatory investigations, progress on these initiatives could be delayed or even halted, as financial regulators are generally cautious about approving new product lines for companies currently embroiled in active criminal investigations regarding money laundering.
The crux for current and potential Wise investors lies in the effectiveness of the company’s compliance systems. They need to assess whether Wise’s mechanisms were sufficient to detect €500 million in suspicious activities and whether the company responded adequately when warning signs emerged. The distinction between negligent oversight and willful misconduct will likely dictate the outcome of these challenges, potentially involving severe penalties or more significant repercussions.