Wise Group's stock tumbled 9% Friday after a report surfaced that Belgian authorities are investigating the cross-border payments firm for potential money laundering. The slide wiped out hundreds of millions in market value, though the company has yet to comment on the probe's scope or timeline.
The investigation
According to the report, Belgian prosecutors are looking into whether Wise failed to flag suspicious transactions or properly vet customers. The probe is said to be in its early stages, with no formal charges filed. Wise, which processes international transfers for millions of users, has faced regulatory scrutiny before, mainly around its licensing and reporting practices. This investigation, however, is the first known to target anti-money laundering compliance directly.
Market reaction
Investors sold off shares quickly after the news broke. By the close of trading, Wise had lost nearly a tenth of its value. Analysts tracking the stock noted the severity of the drop reflected uncertainty about potential fines or operational restrictions. The company's shares had already been under pressure this year amid broader tech selloffs and competition from rivals like Revolut and PayPal.
What's known — and what isn't
Few details are public. The Belgian investigation reportedly involves multiple agencies, but the exact transactions or entities under review remain unclear. Wise's internal compliance systems have been a focus of past regulatory reviews in the UK and Belgium, though no prior findings of money laundering came to light. The company's last annual report stated it spent heavily on compliance infrastructure.
The probe adds to a growing list of European crackdowns on fintech firms' anti-money laundering controls. Regulators across the bloc have tightened oversight after several high-profile scandals. For now, the big question is whether this investigation leads to a formal case or fades without action.
