Wise faces Belgian money laundering probe over fraud and drug trafficking
In brief
- Belgian prosecutors opened criminal investigation into Wise accounts for alleged money laundering linked to fraud, drugs, and corruption
- Wise shares fell sharply following the investigation announcement, damaging investor confidence in the fintech firm
- Investigation follows 2022 Belgian National Bank finding that Wise lacked proof-of-address documentation for hundreds of thousands of accounts
- Wise completed formal remediation plan by late 2024, but criminal probe indicates deeper compliance failures
- Wise US subsidiary settled with six states in July 2025 for $4.2 million over anti-money laundering program deficiencies
Compliance History
Wise's shares declined sharply following the announcement. The criminal probe comes after a pattern of regulatory friction in Belgium. Back in 2022, the Belgian National Bank flagged that Wise was missing proof-of-address documentation for hundreds of thousands of customer accounts.
The company entered into a formal remediation plan with Belgian authorities and confirmed by late 2024 that it had completed the required fixes. But the criminal investigation suggests prosecutors believe there may be more to the story than outdated address records.
Broader Regulatory Pressure
Wise isn't alone in facing Belgian scrutiny. The Brussels Public Prosecutor's office also opened a money-laundering investigation into Worldline's Belgian unit around June 27, 2025. Worldline's shares fell as much as 10% on that news, coming on top of earlier drops as steep as 38%.
The Belgian investigation into Wise raises the stakes considerably by drawing a direct line between Wise accounts and potential proceeds from serious crimes. In July 2025, Wise's US subsidiary settled with six states for $4.2 million over deficiencies in its anti-money laundering program, underscoring persistent compliance gaps across jurisdictions.
The criminal probe creates a credibility problem. The company had presented its completed remediation plan as evidence that it had turned a corner on compliance. A formal investigation suggests Belgian authorities aren't satisfied with that narrative.
