Wise US to pay $4M penalty to address AML deficiencies

Wise US will pay a $4.2 million penalty to resolve a dispute with six state financial regulators.

The unit of U.K. company Wise PLC also agreed to address deficiencies in its anti-money laundering program as part of the settlement with regulators from California, Massachusetts, Minnesota, Nebraska, New York, and Texas.

Wise will conduct a lookback for previously closed accounts, enhance its reporting procedures for suspicious activity, strengthen its due diligence procedures for AML risk, and improve its systems for data integrity regarding customer accounts. The company will hire an independent third party to verify that corrective actions have been performed.

It will submit quarterly progress reports over the next two years.

“Through collaboration with our valued state partners, we will continue to ensure that money transmitters adhere to rigorous standards to protect consumers and the integrity of the financial system,” New York State Department of Financial Services Superintendent Adrienne Harris said in a press release.

“Strong relationships with state and federal regulators alike [are] crucial to ensuring a fair, transparent, and resilient financial system that protects consumers and fosters innovation across the country,” Harris added.