Belgian prosecution hits Wise

Belgian prosecutors have opened a formal investigation into fintech giant Wise, formerly known as TransferWise, on suspicion of money laundering. The news was reported by Yahoo Finance. The announcement had an immediate impact on markets, with Wise shares falling sharply once the information became public.

Wise is one of the world's leading players in cross-border payments and currency exchange, used by millions of individuals and businesses worldwide. The company is listed on the London Stock Exchange.

Fintech companies' rapid growth and automated processes make them attractive targets for those seeking to conceal the origins of illicit funds.
Wise stock plunges following Belgian money laundering investigation - Bilde 1

Not the first time Wise has faced regulatory scrutiny

This is not the first time Wise has drawn criticism from financial regulators. In 2022, the company was fined by the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Markets for failing to conduct adequate checks on the funds and source of wealth of high-risk customers. The new Belgian investigation is, however, of a different and potentially more serious nature, as it involves criminal prosecution rather than civil regulatory oversight.

Wise has not yet commented publicly on the matter in any detail.

$4.4 trillion
Estimated global volume of money laundering in 2025
£100 billion
Estimated annual losses to the UK economy
Wise stock plunges following Belgian money laundering investigation - Bilde 2

Fintech and money laundering: A growing problem

The fintech sector has long been in regulators' crosshairs. Rapid digitalisation, automated customer verification, and high transaction volumes across borders create vulnerabilities that can be exploited. According to industry data, the estimated global scale of money laundering in 2025 has reached $4.4 trillion — an increase of nearly 20 percent since 2023.

Major players have already felt the consequences: TD Bank was fined more than three billion dollars in October 2024 following systematic failures in anti-money laundering controls, while Starling Bank was fined £28.9 million by the UK's Financial Conduct Authority (FCA) in 2024 for inadequate transaction monitoring.

Fintech regulation is struggling to keep pace with innovation — and criminals are exploiting the gap.

Market reaction and broader implications

The sell-off in Wise shares reflects investor concern about what a formal criminal case could mean — in terms of potential fines, reputational damage, and increased compliance costs. Market sentiment is also in a broader risk-off phase, which amplifies the negative response to news of this kind.

For the Norwegian investor, the episode serves as a reminder that fintech stocks carry a regulatory risk premium that is not always priced in. Companies operating across multiple jurisdictions are exposed to a wide and sometimes opaque regulatory landscape.

What happens next?

The scope and outcome of the investigation remain unknown for now. Belgian prosecutors have not disclosed details about which specific transactions or time periods are under scrutiny. Investors and analysts will be watching closely for any statements from Wise's management and the relevant regulators in the period ahead.

The case underscores that even well-established fintech companies with strong market positions are not immune to regulatory risk — and that compliance costs will remain a structural burden across the industry.