Shares of the London-based fintech company "Wise" saw a sharp decline on Monday after it became clear that the firm is the subject of an investigation by the Belgian prosecutor's office. Investors reacted sensitively to news that investigators are checking whether funds linked to fraud, drug trafficking, and corruption have passed through "Wise" accounts.
The investigation, first reported by the "Bureau of Investigative Journalism", focuses on about 500 million euros in suspicious transactions spanning more than 30 European countries. According to the prosecutor's office, "signs of non-compliance" by the company with anti-money laundering rules are being investigated.
What the Belgian prosecutors are checking
The prosecutor's office in "Brussels" began the investigation last year after "Wise" accounts repeatedly appeared in requests for international legal assistance in criminal cases from various European countries. These signals have directed attention to potential gaps in client and transaction controls.
The European operations of "Wise" are managed by the office in "Brussels" under the EU "passporting" scheme, which means that all requests from law enforcement agencies of member states are directed to Belgium rather than to individual national branches. The company explains that this structural feature is what leads to the concentration of inquiries in one jurisdiction.
Position of "Wise": cooperation, but no admitted violations
In an official comment, "Wise" states that it is cooperating with the Brussels prosecutor's office, but to date, no specific conclusions have been presented to it. "It would be premature to comment on any allegations," the company pointed out.
The company emphasizes that submitting suspicious activity reports and responding to inquiries from law enforcement agencies are a "normal part of business" for financial institutions and do not in themselves indicate the presence of violations. At this stage, no formal charges have been brought against "Wise".
The chain of regulatory problems
The Belgian investigation is just the latest episode in a series of regulatory difficulties for "Wise" since its listing on the London Stock Exchange in 2021. In July 2025, a number of regulators in individual US states imposed a fine of 4.2 million dollars for violations related to anti-money laundering measures and obligated the company to re-examine previously closed accounts.
The "National Bank of Belgium" had previously forced "Wise" to draw up an official remediation plan after a 2021 audit found a lack of address registration documents for hundreds of thousands of clients. This calls into question the quality of customer due diligence (KYC) procedures.
Fines in Abu Dhabi and investigation in the UK
The financial markets regulator in "Abu Dhabi" also fined "Wise" $360,000 for weaknesses in anti-money laundering systems. At the same time, no evidence was found that money laundering had actually been carried out through the company, but deficiencies in controls were formally noted.
In the UK, the "Financial Conduct Authority" (FCA) has launched a separate investigation into CEO "Kristo Käärmann" in connection with a fine imposed for tax law violations. The case raises further questions about corporate governance and adherence to regulatory standards by management.
Sharp drop in shares and market reaction
According to financial publications that analyzed the market reaction, on Monday, following the announcement of the investigation, "Wise" shares fell by about 18%. Investors are clearly assessing both the immediate reputational risk and potential future sanctions or additional regulatory restrictions.
The company reminds that it processes about 4.7 million transactions daily and recorded a cross-border transfer volume of over 243 billion dollars for the 2026 financial year. By its own data, about a third of employees worldwide are engaged in activities to protect clients from financial crime – a signal of its efforts to strengthen control systems.
What's next for "Wise"
"Wise" states that it will continue to inform shareholders in a timely manner about the development of the investigation and any important regulatory decisions. At this stage, the future effect on the business remains unclear: on the one hand, the company is under pressure to prove the effectiveness of its compliance systems, and on the other, the client base and volume of operations show a strong market presence.
The outcome of the Belgian investigation and any potential further actions by other regulators will be key to whether the current slump in the share price will prove to be a temporary shock or the beginning of a deeper crisis of confidence in "Wise".