Wise Fined $4.2 Million by U.S. State Regulators Over AML Compliance Shortcomings
Multi-State Regulatory Action Reflects Growing Scrutiny of Fintechs
In a major development highlighting increasing regulatory attention on fintech firms, Wise US, Inc., the U.S. arm of the London-based global money transfer platform Wise, has been fined $4.2 million by a coalition of six U.S. state regulators. The action stems from findings related to anti-money laundering (AML) compliance shortcomings during a routine multi-state examination.
The enforcement action was coordinated by the Multi-State MSB Examination Taskforce (MMET) and involved regulatory bodies from New York, California, Texas, Massachusetts, Minnesota, and Nebraska. This collective move marks one of the most significant state-level enforcement actions against a fintech company in 2024.
Context Behind the Examination
The MMET examination of Wise took place between July 2022 and September 2023 as part of a standard regulatory process. The examination reviewed Wise’s AML compliance systems and controls to ensure alignment with state and federal standards for money services businesses (MSBs).
While regulators did not release a detailed public breakdown of the deficiencies, the examination reportedly focused on areas such as:
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Know Your Customer (KYC) protocols
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Suspicious activity monitoring
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Internal record-keeping procedures
The $4.2 million settlement was issued as a result of the examination’s findings and was accepted by Wise without admitting or denying the allegations — a standard practice in such regulatory settlements.
Wise’s Official Response
In response to the regulatory action, Wise provided an official statement to clarify its position and reaffirm its commitment to robust compliance:
“Wise takes its responsibility to provide a safe and secure service to our customers very seriously. Between July 2022 and September 2023, the Multi-State MSB Examination Taskforce (MMET) conducted a routine examination of Wise US, Inc. Wise fully cooperated with regulators to implement their recommendations. As we build the best way to move and manage the world’s money, we continue to invest heavily in our compliance and controls framework to help ensure we deliver a safe, reliable and seamless customer experience.”
— Spokesperson for Wise
This statement emphasizes Wise’s proactive cooperation with regulatory bodies and its ongoing investment in strengthening compliance measures across its operations.
Fintech Firms Under a Regulatory Microscope
Wise is one of many fintech companies facing increased scrutiny in recent years as global regulators work to apply consistent oversight across both traditional and non-traditional financial players.
This enforcement action is not an isolated case. In recent years, fintechs have encountered several compliance challenges that stem from:
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Rapid global expansion
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Varying jurisdictional requirements
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Resource constraints in scaling internal compliance systems
For regulators, the Wise case highlights the importance of coordinated state-level efforts to ensure that digital-first financial platforms maintain adequate protections against illicit financial activity.
Industry-Wide Takeaways
This multi-state enforcement action underscores several important lessons for other fintech and payments companies:
1. Compliance Must Scale With Growth
As companies expand their user base and product offerings, they must invest proportionally in AML infrastructure — including monitoring systems, training, and internal audits.
2. Routine Examinations Are Serious
Even routine audits can result in serious outcomes if gaps are found. Firms should treat all regulatory interactions with full transparency and preparedness.
3. Reputation and Licensing Are on the Line
For MSBs like Wise, regulatory action can impact not only brand trust but also their ability to operate in certain regions. Maintaining licenses requires ongoing compliance, reporting, and responsiveness.
What Happens Next?
According to the terms of the settlement, Wise will continue working with the involved regulators to fulfill the agreed-upon corrective actions. While the company has not disclosed detailed changes, it has reaffirmed its commitment to improving its compliance environment.
It is expected that Wise — and other similar fintechs — will continue to:
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Hire additional compliance professionals
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Upgrade monitoring technologies
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Strengthen internal policies to keep pace with evolving regulatory standards
Final Thoughts
The enforcement against Wise signals a broader evolution in fintech regulation. As cross-border financial services grow in popularity, regulatory bodies are stepping up their oversight to ensure that innovation does not come at the cost of financial integrity.
For fintechs operating in global and multi-jurisdictional markets, this development serves as a reminder: compliance is not just a regulatory checkbox — it’s a core pillar of trust and long-term viability.
