Fintech firm Wise fined $360,000 by Abu Dhabi regulator

DUBAI, Aug 30 (Reuters) – The regulator of the Abu Dhabi Free Zone Financial Centre said on Tuesday it had fined the local unit of fintech firm Wise $360,000 for anti-money laundering violations ( AML) requirements.

Abu Dhabi Global Markets Financial Services Regulatory Authority (FSRA) said in a statement that it “found that Wise did not establish and maintain adequate anti-money laundering systems and controls to ensure full compliance with its anti-money laundering obligations”.

In response to Reuters inquiries, Wise said it took its responsibility to protect customers and prevent money laundering “very seriously” and that neither the FSRA nor the company had found instances of money laundering or other financial crimes.

The FSRA also said its review found no actual incidents of money laundering due to failures of Wise’s AML systems and controls.

The company said Wise Nuqud’s breaches included failing to identify and verify the source of funds or wealth held by some clients it identified as high-risk before transacting on behalf of clients.

It said Wise (formerly TransferWise) also did not “use customer nationality as part of its risk-based customer assessment,” among other breaches.

“Wise did not contest the FSRA’s findings and agreed to resolve it as soon as possible, which means it is eligible for a 20% discount on the fine,” the FSRA said. Otherwise the fine would be $450,000.

In its statement, Wise said it would “continue to invest in maintaining and improving our AML processes to the highest standards, in partnership with regulators around the world.”

The regulator said Wise “has taken substantial steps to correct the problems and deficiencies … including conducting a gap analysis of its policies, systems and controls in accordance with the regulator’s anti-money laundering and federal anti-money laundering requirements.”

By Yusuf Saba

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