Wise Share Price Drops on London Exchange Amid Money Laundering Investigation

Shares of fintech company Wise fell sharply on the London Stock Exchange on Monday following the company's confirmation that it is cooperating with Belgian prosecutors as part of an investigation into potential money laundering cases.

According to the Bureau of Investigative Journalism, Belgian authorities launched an investigation last year into suspicions that Wise's platform may have been used to transfer funds obtained through fraud, drug trafficking, and corruption. This information has sparked significant concern among investors regarding regulatory and reputational risks.

Wise stated that it is responding to the Brussels Prosecutor's Office's requests and noted that this type of cooperation with law enforcement agencies is standard practice and does not indicate any violations or breaches of law.

According to the company, requests for information from regulators are common in the financial sector and should not be regarded as a sign of violation of anti-money laundering rules.

Wise also explained that it has a robust compliance system that includes customer identification before account opening, transaction monitoring, account restrictions when necessary, and reporting of suspicious activities to relevant authorities.

The company noted that it has significantly increased investments in this area in recent times, and in the six months ending September 30, it spent 131 million pounds on improving compliance systems.

Following the news announcement, Wise's share price fell as much as 19% at the start of the day, marking the sharpest decline since the company's public listing. However, the stock later recovered some losses and was trading at approximately 13% below its previous level.