Wise US has agreed to pay a USD 4.2 million penalty, which will be distributed among the states of California, Minnesota, Nebraska, New York, and Texas.
The Massachusetts Division of Banks (DOB), in collaboration with regulators from the participating states, has announced a joint enforcement action against Wise US for failing to fully conform to AML and Bank Secrecy Act regulations. Wise US is a subsidiary of UK-based fintech firm Wise PLC, operating out of New York and facilitating money transmission both domestically and internationally.
As part of the settlement, Wise is required to:
- Address deficiencies within its compliance program;
- Retain a third party to verify these changes;
- Turn in quarterly reports of a broader initiative to tightly regulate and ensure that financial service companies do not become conduits for unlawful activities such as money laundering or terrorism financing.
Furthermore, state regulators accused Wise of not adhering to mandatory due diligence practices, which include verifying customer identities and monitoring suspicious activity. Financial services businesses have an important role in preventing the misuse of economic systems, needing to observe and sometimes thwart efforts that could undermine legal and regulatory norms. The settlement with Wise follows a previous multistate agreement with Block Inc., which also addressed deficiencies in AML oversight.
The licencing and supervision of over 33.000 nonbank financial services across different states are conducted through the Networked Supervision of the Nationwide Multistate Licensing System (NMLS). Consumers need to use resources such as NMLS to verify the credentials of financial companies and review any past enforcement, ensuring that their transactions occur within the bounds of regulated and secure channels.
A spokesperson from Wise reached out to The Paypers to offer an official comment for the article.
“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.”
CFPB reduced fine in revised action against Wise US
Wise was previously found to have failed in properly disclosing exchange rates, ATM fees, and other costs associated with international remittance services. The company was also cited for not issuing timely refunds when funds did not reach recipients as scheduled, an obligation under federal law governing electronic fund transfers.
Under the initial consent order, Wise was directed to pay approximately USD 450.000 to affected consumers and a civil penalty of USD 2.025 million to the CFPB’s victims' relief fund. In May 2025, the amended order reduced the fine to approximately USD 45,000 while maintaining the requirements for consumer redress.
