The global money transfer company Wise has been fined a total of $4.2 million by regulators in six U.S. states after an investigation uncovered significant lapses in its anti-money laundering (AML) compliance program. The coordinated enforcement action marks a critical moment for the fintech sector, signaling increasing pressure on digital financial services to uphold stringent regulatory standards.
The States and the Penalties
Regulators from New York, California, Texas, Massachusetts, Minnesota, and Nebraska participated in the investigation, which was carried out under the Multi-State MSB Examination Taskforce. The taskforce reviewed Wise’s AML policies and practices between July 2022 and September 2023.
The outcome revealed shortcomings in the company’s systems for detecting and reporting suspicious activity, along with inadequate processes for customer due diligence and risk monitoring. These failings led to the imposition of financial penalties and a mandate for sweeping internal reforms.
Corrective Measures Required
In addition to the fines, Wise has been ordered to:
- Conduct a historical review of accounts that were previously closed, to identify whether any suspicious activity was overlooked
- Strengthen its suspicious activity monitoring systems
- Improve its customer verification and risk assessment procedures
- Appoint an independent third-party auditor to oversee these improvements
- Submit quarterly progress reports to regulators over the next two years
The measures aim to ensure that Wise’s systems are brought into alignment with U.S. AML requirements and international best practices.
Regulatory Commentary
Adrienne Harris, Superintendent of the New York Department of Financial Services, emphasized the importance of robust financial oversight. She noted that collaborative regulatory efforts across states are essential in maintaining the integrity of the financial system and protecting consumers.
Wise’s Response
Wise has stated that it cooperated fully with the regulatory review and acknowledged the areas requiring improvement. A company spokesperson noted that Wise is committed to continuing investments in its compliance operations to ensure customer safety and meet evolving regulatory expectations.
A Pattern of Regulatory Scrutiny
This is not the first time Wise has come under regulatory fire. In January, the U.S. Consumer Financial Protection Bureau (CFPB) penalized the firm for misleading fee disclosures, although the initial $2 million fine was later reduced significantly.
Internationally, the company has faced similar scrutiny. In 2022, Wise paid a $360,000 fine to Abu Dhabi authorities for AML control failures. In Belgium, the firm has also been working through a remediation program to address regulatory concerns related to customer address verification.
Broader Implications for the Fintech Sector
The penalties issued to Wise underscore the growing regulatory focus on compliance failures within the fintech industry. As digital financial services expand, so too do the risks associated with financial crime, especially when oversight systems are not adequately maintained.
This enforcement sends a clear signal: fintech companies must treat AML compliance as a core operational priority—not an afterthought. The reputational and financial costs of falling short are only growing.
What Comes Next
Wise must now undergo significant changes to ensure compliance, under the watchful eye of state regulators and an external auditor. The company’s ability to meet these requirements over the next two years will likely influence its broader regulatory relationships across the U.S. and beyond.
For now, Wise joins a growing list of high-profile financial firms learning that rapid growth must be matched by rigorous compliance infrastructure.
