Belgian Prosecutors Investigate Money Laundering Allegations Against Wise
The London-based financial technology firm Wise is under investigation by Belgian prosecutors over alleged money laundering activities. The case revolves around the company’s European arm, Wise Europe, which is suspected of facilitating illicit transactions tied to drug trafficking, fraud, and corruption. This development makes Belgium the third authority to scrutinize Wise’s anti-money laundering controls, following similar actions by U.S. state regulators and the Consumer Financial Protection Bureau (CFPB) last year.
Details of the Investigation
Wise revealed the ongoing investigation in a recent filing with the U.S. Securities and Exchange Commission, causing the company’s stock value to drop by 8%, after initially plummeting by as much as 20%. The prosecutors are now finalizing a direct summons, a more conventional prosecutorial pathway in Belgium that takes the case directly to the criminal court bypassing an investigating judge.
What is more alarming is the scale of the alleged illicit activity. According to the prosecutors, over half a billion euros in suspicious transactions are under review, sourced from hundreds of criminal files. The suspicious transactions were identified through European Investigation Orders and international letters rogatory, formal channels countries utilize to request assistance in gathering evidence.
The prosecutors have linked the suspected laundering activities to fraud, corruption, and drug trafficking. The investigation is also examining whether criminal organizations utilized Wise Europe’s services. The case is considered to be at an advanced stage and nearing completion.
Wise’s Reaction to the Investigation
In its filing with the SEC, Wise stated that it had not yet been informed of the investigators’ findings and that it would be premature to comment on the matter at this stage. The company stressed that it is working with the Brussels prosecutor to respond to queries about its business, a standard procedure it regularly follows with regulators and law enforcement authorities.
Wise explained that it operates across the European Economic Area under the EU’s passporting system, which allows a company licensed in one EU member state to operate across the bloc. This structure means that all law enforcement requests are directed to Belgium, where Wise Europe is based. The company emphasized that filing suspicious-activity reports and responding to law enforcement requests are a routine part of its operations and are not inherently indicative of non-compliance or wrongdoing.
The Implications for Wise
The investigation could pose a significant threat to Wise’s efforts to sell its technology to other financial institutions, affecting its reputation and strategic growth. If the allegations are confirmed, the most significant risk would be slower growth due to increased friction in client onboarding, stringent regulatory oversight, and potential hesitancy from banking partners.
Pattern Across Jurisdictions
Wise has faced similar compliance issues in other jurisdictions. In 2025, the company agreed to a $4.2 million settlement with six states in the U.S. over its anti-money-laundering program. Earlier the same year, the CFPB ordered Wise to pay about $450,000 to customers and a $44,955 penalty due to deceptive marketing of ATM fees and violations of federal rules on electronic fund transfers.
These previous cases, coupled with the ongoing Belgian investigation, point to a recurring pattern of control weaknesses at the firm, raising significant concerns for investors. The direct summons being prepared by the prosecutor’s office will land the case in criminal court and in the hands of the regulator that permits Wise to operate across Europe.
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