London-listed payments firm Wise is facing a criminal investigation in Belgium concerning approximately 500 million euros in potentially suspicious transactions linked to fraud, corruption, and drug trafficking. Brussels prosecutors launched the probe in 2024 after Wise accounts repeatedly surfaced in cross-border judicial assistance requests from over thirty European jurisdictions, raising questions about the firm’s anti-money laundering controls and customer verification processes.
The investigation examines whether Wise breached AML obligations, which require payment institutions to conduct adequate customer due diligence, monitor for irregular activity, and submit timely suspicious transaction reports to relevant authorities. The scale of flagged transactions reflects Wise’s substantial market presence, with the company processing roughly 4.7 million daily transactions across more than 80 regulatory licences and serving 19 million active customers globally.
Wise has stated it is cooperating with Belgian prosecutors but noted no formal findings have been communicated. The company attributes the concentration of requests in Belgium to its EU passporting arrangements, with its Belgian-licensed entity servicing the entire European Economic Area. This structure channels all continental law enforcement enquiries through Brussels regardless of transaction origin.
For payment businesses and FX brokers operating under similar passporting models, the case illustrates how centralised licensing structures can amplify regulatory scrutiny and expose firms to prosecutorial action in their home jurisdiction based on cross-border activity patterns.
FXnCO Insight
Firms relying on EU passporting should review whether their AML frameworks adequately scale with transaction volumes across multiple jurisdictions, as regulatory tolerances tighten around cross-border payment flows.
Source: Finance Magnates