Federal regulatory agency, the Consumer Financial Protection Bureau (CFPB), imposes a financial penalty of $2.5 million on remittance services provider, Wise, due to alleged transgressions in the area of remittances.

In a series of regulatory actions, money transfer platform Wise has faced scrutiny over alleged illegal remittance practices and anti-money laundering (AML) compliance issues.

The Consumer Financial Protection Bureau (CFPB) ordered Wise to pay $2.5 million for alleged illegal remittance practices in January 2025. The fine was later reduced significantly to $44,955[1]. The CFPB claimed that Wise violated the Consumer Financial Protection Act of 2010 by misleading customers about ATM fees, free withdrawals, and other customer perks.

Wise advertised lower ATM fees but rarely applied them to U.S. customers, and it limited promised free withdrawals of more than $200 to $100 each. The issues found by the CFPB were primarily technical, such as PDF download issues, wording choices, rounding of exchange rates, and display of disclaimer text.

However, the ongoing regulatory attention has shifted towards AML compliance. In July 2025, Wise agreed to pay a $4.2 million fine and implement enhanced AML controls as part of a settlement with multiple U.S. states[1][2][3][5]. As part of this settlement, Wise committed to invest heavily in compliance measures, provide quarterly reports for two years, and improve oversight[2].

Since the order was announced, Rohit Chopra, former CFPB Director, stated that Wise gave itself an unfair advantage by deceiving customers in the remittances market. European regulators also compelled Wise to devise a formal plan to rectify the issue of the lack of proof of address for several of its customers in 2022.

The current status of the CFPB's investigation into Wise's illegal remittance practices, particularly regarding allegations of inaccurate fees and non-disclosure of exchange rates, is that Wise has cooperated with the CFPB to address these issues and has resolved most of them by November 2022.

In a separate development, Wise ended its partnership with Evolve Bank & Trust in 2023. The company has also faced a data breach incident affecting its customers through Evolve Bank & Trust and has notified those impacted by the cybersecurity issue.

Wise allows customers to send, receive, and store remittances through a mobile app, prepaid accounts, and debit cards. Wise US, a wholly owned subsidiary of Wise PLC, is headquartered in New York and has over 3 million customers nationwide.

| Issue | Status (as of July 2025) | |------------------------|-------------------------------------------------------------------------------| | Inaccurate fees & non-disclosure of exchange rates | Previous CFPB fine of $2.025 million in Jan 2025, reduced to $44,955; no recent updates | | AML Compliance | $4.2 million fine settled with six U.S. states in July 2025; Wise enhancing AML controls and reporting |

References:

[1] Consumer Financial Protection Bureau (2025). Wise to Pay $2.025 Million for Alleged Illegal Remittance Practices. [online] Available at: https://www.consumerfinance.gov/about-us/newsroom/wise-to-pay-2-025-million-for-alleged-illegal-remittance-practices/

[2] New York State Department of Financial Services (2025). Wise Agrees to Pay $4.2 Million to Resolve Allegations of Anti-Money Laundering and Counter-Terrorism Financing Violations. [online] Available at: https://www.dfs.ny.gov/about/press/pr2507101.htm

[3] Massachusetts Office of the Attorney General (2025). Wise Agrees to Pay $4.2 Million to Settle Allegations of Anti-Money Laundering Violations. [online] Available at: https://www.mass.gov/news/wise-agrees-to-pay-42-million-to-settle-allegations-of-anti-money-laundering-violations

[4] California Department of Business Oversight (2025). Wise Agrees to Pay $4.2 Million to Resolve Allegations of Anti-Money Laundering and Counter-Terrorism Financing Violations. [online] Available at: https://www.dbo.ca.gov/about/newsroom/press/2025/2025-07-10-wise-agrees-to-pay-4-2-million-to-resolve-allegations-of-anti-money-laundering-and-counter-terrorism-financing-violations/

[5] Texas Department of Banking (2025). Wise Agrees to Pay $4.2 Million to Resolve Allegations of Anti-Money Laundering and Counter-Terrorism Financing Violations. [online] Available at: https://www.dob.texas.gov/newsroom/PressReleases/PR2025-07-10.aspx

Despite the significant reduction in the initial fine, Wise still faces ongoing regulatory scrutiny due to allegations of illegal remittance practices and AML compliance issues, with the company committing to invest heavily in compliance measures and provide regular reports, as part of a settlement in July 2025.
The financial technology (fintech) company, Wise, has also encountered challenges in the broader business and finance industry, as it was found to have violated consumer protection laws by misleading customers about fees and other perks, as well as facing fines for non-compliance with anti-money laundering regulations.

Federal regulatory agency, the Consumer Financial Protection Bureau (CFPB), imposes a financial penalty of $2.5 million on remittance services provider, Wise, due to alleged transgressions in the area of remittances.