Minnesota Joins Multistate Action Against Wise US for AML Violations
Summary
The Minnesota Department of Commerce, along with five other state regulators, has taken enforcement action against Wise US, Inc. for violations of its anti-money laundering (AML) compliance program. Wise agreed to pay a $4.2 million penalty and implement corrective actions to address deficiencies.
What changed
The Minnesota Department of Commerce, in coordination with five other state financial regulators, has entered into a settlement with Wise US, Inc. (Wise) for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) requirements. The action stems from Wise's failure to implement and maintain effective systems to detect and prevent money laundering, which do not meet U.S. legal standards. As part of the multistate settlement, Wise will pay a combined $4.2 million penalty to the participating states, including Minnesota, and must correct identified deficiencies in its AML program.
Wise is required to hire an independent third party to verify remediation efforts and will submit quarterly compliance reports to the involved states for two years. This enforcement action highlights the importance of robust AML programs for money transmitters, including customer due diligence, identity verification, and suspicious-activity reporting. Regulated entities should review their AML programs to ensure compliance with BSA/AML laws and be aware of potential penalties for deficiencies, which can include significant fines and mandatory corrective actions.
What to do next
- Review Wise's AML program for compliance with BSA/AML requirements.
- Ensure customer due diligence, identity verification, and suspicious-activity reporting processes are robust.
- Monitor for potential similar enforcement actions by other state or federal regulators.
Penalties
$4.2 million combined penalty to state money transmission regulators
Source document (simplified)
Minnesota Joins Multistate Enforcement Action Against Wise US, Inc. for Bank Secrecy Act and Anti-Money Laundering Violations
July 10, 2025 | Banking & Finance, Enforcement SAINT PAUL, MN: The Minnesota Department of Commerce, in coordination with five other state financial regulators, have taken joint enforcement action against Wise US, Inc. (Wise) for violations related to its anti-money laundering compliance program. Wise’s anti‑money laundering (AML) program does not meet U.S. legal requirements, and under the Bank Secrecy Act (BSA), Wise failed to implement and maintain effective systems that detect and prevent money laundering.
Wise is licensed to transmit money both within the United States and internationally. In a multistate settlement signed this week, Wise agreed to:
- Pay a combined $4.2 million penalty to state money transmission regulators from Minnesota, California, Nebraska, New York, Texas, and Massachusetts
- Correct identified deficiencies in its AML program
- Hire an independent third party to verify remediation
- Submit quarterly compliance reports for two years to all involved states “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.”
This settlement follows a similar multistate agreement earlier this year involving Block, Inc. and its Cash App, which also addressed BSA/AML violations.
Under state and federal law, licensed money transmitters must maintain robust compliance programs that include customer due diligence, identity verification, suspicious-activity reporting, and appropriate controls for high-risk accounts. Regulators determined Wise had failed to meet these requirements, creating potential for its platform to be used for money laundering, terrorist financing, and other illicit activities.
Minnesota licenses and supervises hundreds of nonbank financial services firms, including money transmitters, through the Nationwide Multistate Licensing System. Minnesota consumers and businesses can contact Commerce’s Enforcement Division about concerns or complaints:
- File a complaint online
- Email: consumer.protection@state.mn.us
- Verify whether an agent or company is licensed to do business in Minnesota: License Lookup.
- Search Commerce Actions and Regulatory Documents to view past enforcement actions. Connect with the Minnesota Commerce Department
Get updates and news from the Minnesota Department of Commerce by following Commerce at mn.gov/commerce or @MNCommerce on social media.
Contact
Minnesota Department of Commerce
news.commerce@state.mn.us
Permalink: https://mn.gov/commerce/news/index.jsp?id=17-696017 View entire list
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