Shares fall to near 18-month low
Wise Group shares fell to a near 18-month low after a report said Belgian prosecutors are investigating the cross-border payments company for potential money laundering.
Shares dropped 9.2% to £8.48 in European midday trading on June 1, briefly falling close to 20% earlier in the session, The Wall Street Journal reported. In New York, where Wise holds its primary listing, shares fell more than 10% premarket to $11.44.
Bureau report details €500 million in transactions
The Bureau of Investigative Journalism reported that prosecutors in Belgium are looking into €500 million ($583.1 million) in transactions, examining whether criminals used Wise accounts to launder proceeds of fraud, corruption, and drug trafficking. Prosecutors opened the investigation last year after Wise accounts were flagged in criminal proceedings in more than 30 European countries, the report said.
The Brussels prosecutor’s office has not issued a public statement on the investigation and did not immediately respond to a request for comment, according to the Journal.
Wise says inquiries are incomplete
In response, Wise said Monday it was “currently working with the Brussels prosecutor to respond to queries about our business.” The London-headquartered company added that the inquiries remained incomplete and no specific findings had been shared.
“As such, it would be speculative for us to comment on any allegations,” Wise said.
The company said it faces “the reality of increasingly sophisticated bad actors attempting to exploit our platform” and that it continually invests in technology and teams to address threats. Belgium is home to Wise’s European operations.
The company, which went public in London in 2021, moved its primary listing to New York in May. Wise has 14.8 million customers worldwide and handles $16 billion in monthly transaction volume, according to its website.