Wise plc shares dropped steeply in pre-market trading, sliding 13.9% to reach $11 after reports that prosecutors in Belgium have opened a formal inquiry into whether the company’s accounts were used as a vehicle for laundering funds tied to criminal activity.
The probe is reported to centre on allegations that Wise accounts were exploited to launder proceeds from fraud, corruption, and drug trafficking. Belgian authorities initiated the inquiry after Wise accounts surfaced in hundreds of cross-border criminal proceedings spanning more than 30 European countries, according to the report.
At the heart of the prosecutors' concerns is an estimated roughly €500 million in suspicious transactions linked to Wise. That figure has become a focal point for regulators and investors alike as market participants reassess the company's exposure to regulatory enforcement and reputational damage.
Wise issued a statement confirming it is responding to questions from the Brussels prosecutor’s office and said the prosecutor has not provided any specific findings to date. The company stressed that the inquiries are ongoing and that it would be speculative to comment on any allegations at this stage.
"Requests for information from law enforcement agencies are a normal part of operations and are not, in themselves, indicative of non-compliance with anti-money laundering requirements or of any wrongdoing."
Investors are parsing that statement against the backdrop of Wise’s regulatory history. The company was previously placed on a formal remediation plan by European regulators after a Belgian National Bank review in early 2022 found that Wise lacked adequate documentation to demonstrate compliance with anti-money laundering controls.
If prosecutors determine that Wise failed to detect or report telltale signs of illicit activity, the company could face penalties substantially greater than the $4.2 million fine levied against its U.S. subsidiary for comparable deficiencies. The inquiry therefore carries implications for Wise’s operations across multiple jurisdictions should European regulators take more aggressive enforcement action.
The broader U.S. equity market offered no clear macro explanation for the stock’s fall. The S&P 500 was up 0.2%, the Dow Jones Industrial Average was up 0.7%, and the NASDAQ Composite rose 0.2% on the same session, highlighting that the move was driven by company-specific developments rather than a general market selloff.
Analysts and investors pointed to the confluence of a high-profile criminal probe, an earlier AML remediation requirement, and the reputational risk to Wise’s cross-border payment model as reasons for the rapid reassessment of the firm’s risk profile. The stock, trading near $11, is approaching its 52-week low of $10.85, reflecting heightened uncertainty about the potential regulatory, financial, and operational fallout from the Belgian investigation.
Market watchers also noted the timing of the disclosure in light of Wise’s recent corporate moves, including its transition to a primary U.S. listing on the Nasdaq just weeks prior. That strategic shift may complicate investor perceptions of jurisdictional risk and regulatory scrutiny.
What to watch next
- Whether the Brussels prosecutor’s office produces formal findings that point to compliance failures or criminal involvement.
- Any regulatory follow-up from European authorities that could affect Wise’s ability to operate across affected jurisdictions.
- Further disclosures from Wise as it responds to requests for information and as authorities conclude parts of the inquiry.
The situation remains fluid. Wise has stated it is cooperating with investigators, and prosecutors have not yet presented public findings. Until new, verifiable information is released by authorities, the precise scope and potential penalties linked to the probe remain uncertain.