Wise stock tumbles on reports of Belgian anti-money laundering investigation

Shares of cross-border fintech specialist Wise (NASDAQ:WSE) fell as much as 19% in London on Monday following confirmation from Belgian prosecutors that they are investigating the company’s European division over potential money-laundering offenses.

The inquiry centers on more than €500 million ($582 million) in suspicious transactions that authorities suspect may be tied to criminal networks.

The prosecutor’s office disclosed that the case was initiated last year and is now nearing completion.

Investigators are focusing on whether illicit networks exploited the infrastructure of Wise Europe to transfer funds generated from fraud, corruption, and drug trafficking.

A formal summons to criminal court is currently being drafted, and prosecutors intend to submit their final conclusions to the National Bank of Belgium once the judicial process concludes.

The peak intraday decline of 19.3% in London marked the sharpest single-day retreat for the stock since its initial public market debut in 2021.

Meanwhile, on U.S. markets—where Wise shifted its primary stock listing to the Nasdaq exchange just last month—shares dropped 11% shortly after the opening bell.

According to details shared by the prosecutor’s office, the investigation has uncovered structural indications of non-compliance with anti-money laundering (AML) legislation, specifically pointing toward a systematic failure to properly identify customers and monitor their financial activities.

Wise acknowledged that it has been interacting with Brussels prosecutors regarding their inquiries but emphasized that it has not received any formal findings or complaints.

The company stated that because its European subsidiary is headquartered in Belgium, law-enforcement requests originating from across the entire European Economic Area (EEA) are naturally centralized through its Brussels office.

The payments company reiterated that combating financial crime remains an organizational priority, noting that approximately one-third of its global workforce is dedicated strictly to compliance and financial crime prevention.

Wise currently services a global consumer base exceeding 19 million users, managing a daily transaction volume of roughly 4.7 million transfers.

Its Belgian licensing serves as the regulatory hub for its broader continental business, granting it access to European Union markets via financial passporting rights.