Wise has been hit with another regulatory penalty in the US, but will this deter investor confidence ahead of its US listing?
International money transfer company Wise has been issued a $4.2m fine from several US state regulators after it was found lacking anti-money laundering (AML) checks and controls.
Wise was investigated and subsequently penalised by regulatory agencies in California, Massachusetts, Minnesota, Nebraska, New York and Texas.
Regulators issued the $4.2m fine and an order for Wise to review previously closed accounts which could be in breach of money laundering rules. The company must also update its reporting procedure to state regulators and improve its AML/CFT due diligence procedures.
Wise will also be required to engage with an independent third party to verify its corrective actions related to AML offences, submitting reports quarterly to the relevant regulators for the next two years.
“Through collaboration with our valued state partners we will continue to ensure that money transmitters adhere to rigorous standards to protect consumers and the integrity of the financial system,” said New York State Department of Financial Services (DFS) Superintendent Adrienne A. Harris.
“Strong relationships with state and federal regulators alike is crucial to ensuring a fair, transparent, and resilient financial system that protects consumers and fosters innovation across the country.”
In a statement, Wise said: “Wise takes its responsibility to provide a safe and secure service to our customers very seriously. Between July 2022 and September 2023, the Multi-State MSB Examination Taskforce (MMET) conducted a routine examination of Wise US, Inc.
“Wise fully cooperated with regulators to implement their recommendations. As we build the best way to move and manage the world’s money, we continue to invest heavily in our compliance and controls framework to help ensure we deliver a safe, reliable and seamless customer experience.”
Will enforcement affect Wise US stock listing?
This is not the first time Wise has been hit with regulatory action in the US. The company was hit with a $2m fine by the Consumer Financial Protection Bureau (CFPB) in January 2025 for misleading customers regarding fees and charges.
The offence investigated by the CFPB found Wise had illegally advertised inaccurate fees and charges, while it also failed to disclose accurate exchange rates and other associated costs.
Wise was ordered to pay victims $450,000 alongside the $2m fine that contributed to the CFPB’s victims relief fund. However, the civil penalty of $2m was reduced to $44,955. The CFPB reduced the initial fine due to cooperation with the investigation, as well as providing relevant documents.
These enforcement actions come as Wise is preparing to move its primary stock listing from the London Stock Exchange to the US. Announced on June 5, Wise will take the decision to remain listed in the UK, but as part of a secondary listing, while its primary listing will be on a US stock exchange.
With two regulatory fines in regards to AML and customer protection failures, it remains to be seen if this could cause potential disturbance for US investors.
