Wise Settles States’ Allegations of Inadequacies in AML/CFT Program

Six state regulators have secured a $4.2 million settlement from Wise US that resolves the regulators’ allegations that the company had inadequacies in its Bank Secrecy Act, anti-money laundering (AML) and Countering the Financing of Terrorism (CFT) program.

New York-based Wise US, which is a subsidiary of U.K. company Wise PLC, signed the multistate settlement with regulators from California, Massachusetts, Minnesota, Nebraska, New York and Texas, the New York State Department of Financial Services (DFS) said in a Wednesday (July 9) press release.

In addition to paying the penalty, Wise US will remediate deficiencies in its AML/CFP Program, have an independent third party verify that it has performed corrective actions specified in the consent order and, for two years, submit quarterly written progress reports to the regulators, according to the release.

New York State DFS Superintendent Adrienne A. Harris said in the release that the regulators’ collaboration aims to ensure a “fair, transparent and resilient financial system that protects consumers and fosters innovation across the country.”

“Through collaboration with our valued state partners we will continue to ensure that money transmitters adhere to rigorous standards to protect consumers and the integrity of the financial system,” Harris said.

Reached by PYMNTS, a spokesperson from Wise said in an emailed statement that the company “takes its responsibility to provide a safe and secure service to our customers very seriously.”

“Between July 2022 and September 2023, the Multi-State MSB Examination Taskforce (MMET) conducted a routine examination of Wise US, Inc.,” the statement said. “Wise fully cooperated with regulators to implement their regulations. As we build the best way to move and manage the world’s money, we continue to invest heavily in our compliance and controls framework to help ensure we deliver a safe, reliable and seamless customer experience.”

In another, separate case, Wise and the Consumer Financial Protection Bureau (CFPB) reached an agreement in January to settle the regulator’s allegations that the company advertised inaccurate fees and failed to provide consumer disclosures.

Reached by PYMNTS at the time, Wise said in an emailed statement that it “strongly disagrees” with the CFPB’s characterization of the company’s conduct but worked with the regulator in good faith to conclude the matter.