Wise (LSE:WISE) shares came under significant pressure on Monday after the fintech company confirmed it was cooperating with authorities in Belgium following reports that its platform had been linked to a money laundering investigation.
The decline followed a report by the Bureau of Investigative Journalism stating that Belgian prosecutors launched an inquiry last year into allegations that accounts on the Wise platform may have been used to move funds connected to fraud, drug trafficking and corruption.
Company Confirms Cooperation With Authorities
Wise acknowledged that it is responding to requests for information from the Brussels prosecutor’s office but stressed that such interactions are a routine aspect of operating within the financial services sector.
“Requests for information from law enforcement agencies are a normal part of operations and are not, in themselves, indicative of non-compliance with anti-money laundering requirements or of any wrongdoing,” Wise said in a statement.
The company did not indicate that any formal findings had been made against the business and reiterated its commitment to working with regulators and law enforcement agencies where required.
Shares Suffer Sharpest Decline Since Listing
Investor reaction was swift, with Wise shares falling by as much as 19% during Monday trading in London. The move represented the company’s largest single-day decline since its stock market debut in 2021.
The shares later recovered part of the loss but remained sharply lower, trading about 13% down at approximately 812 pence by 08:52 GMT.
Compliance Measures Highlighted
In response to the reports, Wise outlined the measures it has in place to combat financial crime. The company said its controls include customer identity verification before account opening, ongoing transaction monitoring, account closures where necessary and the reporting of suspicious activity to relevant authorities.
Management also highlighted substantial investment in compliance and risk management systems. During the six months to 30 September, Wise spent £131 million on infrastructure and capabilities designed to operate within an increasingly regulated environment and to address evolving financial crime risks.
Recent New York Listing Shift
The developments come shortly after Wise completed a change to its stock market structure, moving its primary listing from London to New York. The company said the move was intended to broaden access to investors and increase its profile in U.S. capital markets.
Although New York is now its primary listing venue, Wise continues to maintain a secondary listing in London, where the company remains headquartered.
More about Wise
Wise is a global financial technology company that provides international payments, multi-currency accounts and cross-border money transfer services for consumers and businesses. Founded to reduce the cost and complexity of international banking transactions, the company operates across multiple jurisdictions and serves millions of customers worldwide through its digital payments platform.
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