Press Release  Massachusetts Joins Multistate Enforcement Action Against Wise US, Inc. for Bank Secrecy Act and Anti-Money Laundering Violations

The Massachusetts Division of Banks (DOB), in coordination with five other state financial regulatory agencies, has taken joint enforcement action against Wise US, Inc. (Wise) for violations related to its anti-money laundering compliance program.

Wise, headquartered in New York, is licensed to transmit money on behalf of customers within the United States and internationally. The company is a subsidiary of Wise PLC, a financial technology firm based in the United Kingdom.

In the multistate settlement signed this week with the  money transmission regulators from the states of California, Minnesota, Nebraska, New York, and Texas, Wise agreed to pay a $4.2 million penalty to be split amongst the participating state agencies, correct deficiencies in its anti-money laundering program, hire an independent third party to verify corrective actions in the program, and submit quarterly reports for two years to the states.

“Results like this illustrate the power of collaboration and consistency,” said DOB Commissioner Mary L. Gallagher. “This week’s action is an example of state regulators acting quickly to ensure compliance and protect consumers by coordinating a multi-state enforcement action. By combining the states' collective enforcement power, states can come together to provide consumers nationwide with one common resolution.”

State financial regulators have primary licensing and supervisory responsibility for companies engaged in money transmission and have developed a robust nationwide framework for licensing, regulation, and supervision of the industry. This “Networked Supervision” approach produces a more collaborative regulatory framework and stronger consumer protections.

This settlement follows DOB’s multistate settlement with Block Inc. for anti-money laundering and Bank Secrecy Act violations.

Under anti-money laundering rules and regulations, financial services firms are required to perform due diligence on customers, including verifying customer identities, reporting suspicious activity, and applying appropriate controls for high-risk accounts. State regulators found Wise was not in compliance with certain requirements, creating the potential that its services could be used to support money laundering, terrorism financing, or other illegal activities.

State financial regulators license and supervise more than 33,000 nonbank financial services companies through the Nationwide Multistate Licensing System (NMLS). Consumers can visit NMLS Consumer Access to verify that a company is licensed to do business in Massachusetts and to view past enforcement actions.

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