Estonian-founded Wise hit by Belgian money laundering investigation
The European arm of U.K.-based money transfer company Wise is under investigation in Belgium over suspected money laundering involving more than €500 million.
Wise is being investigated by Belgium's Federal Prosecutor's Office over allegations that its European platform may have been used for money laundering, with links to fraud, corruption and drug trafficking, according to Reuters and other media reports.
Prosecutors are examining whether Wise accounts were involved in suspicious transactions reportedly exceeding €500 million across 30 European countries. The investigation, which began last year, is now nearing completion.
Wise said it is cooperating with Belgian prosecutors but stressed that no specific findings have yet been shared with the company.
"As such, it would be speculative for us to comment on any allegations," it said, adding that requests for information from law enforcement agencies are a "normal part of operations" and not indicative of noncompliance with anti-money laundering (AML) requirements or wrongdoing.
The company said that like every financial institution, it faced "the reality of increasingly sophisticated bad actors" attempting to exploit its platform, and stressed that around a third of its staff globally is dedicated to protecting customers.
Founded in London in 2011 by Estonians Kristo Käärmann and Taavet Hinrikus, Wise (formerly TransferWise) processes millions of transactions a day, serving more than 19 million customers worldwide.
Shares in the company, which is dual-listed in London and on the New York-based U.S. Nasdaq exchange, fell sharply following Monday's news.
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Editor: Aili Vahtla
