California’s Department of Financial Protection and Innovation has joined five other state regulators in a $4.2m multistate enforcement action against Wise, for breaches of Bank Secrecy Act and AML laws under the Countering the Financing of Terrorism programme.
The settlement requires Wise to pay a $4.2m penalty, with $700,000 allocated to California, and mandates corrective action on deficiencies within its AML/CFT programme. The firm will also appoint an independent third party to verify the corrective measures and submit quarterly updates over a two-year period to state regulators.
The DFPI led the action alongside regulators from Minnesota, Nebraska, New York, Texas, and the Commonwealth of Massachusetts.
Wise, a subsidiary of UK-based FinTech firm Wise PLC, is licensed to transmit money across the United States and internationally, operating from its headquarters in New York.
DFPI commissioner KC Mohseni said, “This action highlights the ongoing collaboration between the DFPI and other state regulators to strengthen consumer protection and uphold trust in the financial services industry nationwide.” Mohseni added that this marks the second major action this year targeting anti-money laundering compliance by money transmitters, following the DFPI’s multistate settlement with Block, Inc. in January 2025.
Financial services firms are required to conduct customer due diligence under AML regulations, which includes identity verification, monitoring for suspicious activity, and maintaining controls for high-risk accounts. State regulators identified gaps in Wise’s compliance practices, raising concerns that the platform’s services could have been exploited for money laundering, terrorism financing, or other illicit activities.
The case highlights the heightened regulatory focus on AML compliance across the FinTech sector as authorities continue to ensure platforms are not misused for financial crimes, maintaining trust in digital payment services and cross-border money transfers.
Recently, the Bank of England imposed an £11.9m fine on Vocalink Limited after the company failed to meet compliance obligations under section 196 of the Banking Act 2009.
This marks the first time the Bank has fined a financial market infrastructure firm, signalling its commitment to enforcing standards across UK payment systems.
A spokesperson from Wise said, “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.”
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