Rayeiris Maduro Rondon @Rayeiris: "Way to start the month…..."

Spain

Way to start the month… $WISE.L (Wise Ltd) down -18% I saw many newspapers reporting that prosecutors in Belgium are investigating Wise's AML practices and half a billion in suspicious transactions. However, I believe we have to take into account that sometimes the news sells more than reality, and be cautious with how we analyse this information. After reading Wise's responses to the allegations, it became clear to me that this may simply be an investigation in its early stages, with no formal charges to prompt any impulsive decision. What makes me doubt is that since the last investigations from 2022 to 2024, Wise has implemented measures to comply with the law and prevent money laundering, and the allegations claim their system failed to comply with regulations or to report suspicious transactions, even though they've tried for so long to clean their image after past investigations. Here are some declarations from Wise: "We are currently working with the Brussels prosecutor to respond to queries about our business, as we routinely do with regulators and law-enforcement authorities. His office’s enquiries are still incomplete and no specific findings have been shared with us to date. As such, it would be speculative for us to comment on any allegations. We will continue to engage with the Brussels prosecutor’s office if and when any specific findings are made available to us." They are making their point that all financial institutions must respond to any requests from any law enforcement and their commitment to avoid any bad actors on their platform, but of course, Wise is capable of following all the KYC (know your client) requirements. We need time to determine whether the allegations against Wise will become formal charges, or whether they will dissolve into a settlement or remediation. But the market reacts immediately to something that could or couldn't become a real problem. Here the complete note from Wise: wise.com/gb/blog/response-to-recent-press-articles $WSE (Wise Group Plc) $SPX500 $LSEG.L (London Stock Exchange)

Not investment advice. The author may have financial interests in the mentioned instruments.