British money transfer firm Wise has been placed under a formal remediation plan by European regulators due to issues with its anti-money laundering controls, the Financial Times reported on Friday.
A review conducted by the Belgian National Bank, which oversees Wise’s operations in Europe, found that the company lacked proof of address for hundreds of thousands of its customers.
This review, which took place in early 2022, was part of a routine inspection in the wake of Brexit, according to Wise.
“We worked closely with our regulator in Belgium and have fully implemented their recommendations,” Wise said in a statement to Reuters, confirming the findings.
As part of the remediation plan approved by Belgian regulators, Wise was required to contact all affected customers within weeks and request proof of their addresses. The plan also mandated that the accounts of customers who failed to provide the necessary documentation be frozen, the Financial Times reported.
The Belgian National Bank declined to comment on the matter to the Financial Times and did not immediately respond to a Reuters request for further details.
Founded in 2011, Wise went public on the London Stock Exchange in 2021 with a mission to make international money transfers more affordable, transparent, and efficient.
