The New York State Department of Financial Services (DFS) Superintendent Adrienne A. Harris today and five other state financial regulators have taken coordinated action against New York-based Wise US, Inc. (Wise), for inadequacies in Wise’s Bank Secrecy Act/Money Laundering/Countering the Financing of Terrorism Program (“AML/CFT Program”). Wise is a subsidiary of Wise PLC, a United Kingdom company.
“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,” said Superintendent Harris. “Strong relationships with state and federal regulators alike is crucial to ensuring a fair, transparent, and resilient financial system that protects consumers and fosters innovation across the country.”
“Results like this illustrate the power of collaboration and consistency. 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,” said Massachusetts Commissioner Mary L. Gallagher.
“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,” said DFPI Commissioner KC Mohseni. “It marks the second significant action this year involving anti-money laundering compliance by money transmitters.”
“This enforcement action underscores Minnesota’s commitment to safeguarding consumers and preserving integrity in our financial services,” said Commerce Assistant Commissioner of Enforcement Jacqueline Olson. “By working with our partners in other states, we are able to uphold rigorous standards that help prevent bad actors from using money transmitters for illegal activities that hurt everyday Minnesotans.”
NDBF Director Kelly Lammers said, “Our department takes seriously its mission to protect and maintain the public’s confidence in the financial industries that do business in Nebraska. When companies fail to comply with the rules for doing business here, we will take appropriate action to safeguard Nebraskans.”
In the multistate settlement signed this week along with regulators from Massachusetts, Texas, California, Minnesota, and Nebraska, Wise agreed to pay a $4.2 million penalty and take a number of corrective actions to remediate deficiencies in its AML/CFT Program, including conducting a lookback for previously closed accounts, enhancing its reporting procedures for suspicious activity, strengthening its due diligence procedures for AML/CFT risk, and improving its systems for data integrity regarding customer accounts. In connection with these efforts, Wise will engage an independent third party to verify corrective actions to the systems have been performed and, for two years, submit quarterly written progress reports to the multistate regulators.
Read the Wise consent order on the Department's website: Click Here
