London-listed cross-border payments disruptor Wise PLC (LSE:WISE) has faced criticism from European regulators for lapses in its anti-money laundering (AML) controls, according to sources cited by the Financial Times.
The Belgian National Bank (BNB), Wise's European regulator, reportedly identified shortcomings in early 2022, including a lack of proof of address for hundreds of thousands of customers.
The FT report stated that regulators called on Wise to implement a remediation plan to address the deficiencies.
This plan, approved by the BNB, included contacting affected customers within weeks to obtain the necessary documents and freezing accounts for those who failed to comply.
“We worked closely with our regulator in Belgium and have fully implemented their recommendations,” Wise stated in the report.
“Around a third of our global team is dedicated to fighting financial crime and helping to ensure that we are in compliance with the requirements of the more than 65 regulatory licences that we maintain around the world,” the company added.