California Joins $4.2 Million Multistate Enforcement Action Against Wise US, Inc. For BSA/AML Violations

SACRAMENTO — The California Department of Financial Protection and Innovation (DFPI) and five other state financial regulatory agencies have taken action against Wise US, Inc. (Wise) for violations of Bank Secrecy Act and anti-money laundering laws under the Countering the Financing of Terrorism Program (“AML/CFT Program”).

In the multistate settlement signed this week, Wise agreed to pay a $4.2 million penalty, including $700,000 to California; correct deficiencies in its AML/CFT Program; hire an independent third party to verify corrective actions in the program; and submit quarterly reports for two years to the states to ensure deficiencies are being addressed. The DFPI, along with state regulators in Minnesota, Nebraska, New York, Texas, and the Commonwealth of Massachusetts, led the multistate enforcement effort.

“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.”

Under anti-money laundering rules and regulations, financial services firms are required to perform due diligence on customers, including verifying identities, reporting suspicious activity, and applying appropriate controls for high-risk accounts. State regulators found that Wise was not in compliance with certain requirements, creating the potential that its services could be used to support money laundering, terrorism financing, or other illegal activities.

Wise is headquartered in New York and is licensed to transmit money on behalf of customers within the United States and internationally. The company is a subsidiary of Wise PLC, a financial technology firm based in the United Kingdom.

This settlement follows the DFPI’s multistate settlement with Block, Inc. for Bank Secrecy Act and anti-money laundering violations announced in January 2025.

State financial regulators license and supervise more than 33,000 nonbank financial services companies through the Nationwide Multistate Licensing System (NMLS).

Consumers can visit NMLS Consumer Access to verify that a company is licensed and to view past enforcement actions. Complaints by California residents may be submitted directly with the DFPI online (dfpi.ca.gov/submit-a-complaint) or call toll-free at (866) 275-2677.

The Department of Financial Protection and Innovation protects consumers, regulates financial services, and fosters responsible innovation. DFPI protects consumers by establishing and enforcing financial regulations that promote transparency and accountability. We empower all Californians to access a fair and equitable financial marketplace through education and preventing potential risks, fraud, and abuse. Learn more at dfpi.ca.gov.

A copy of the press release is attached and is available on the DFPI website.

If you have questions, contact the DFPI Office of Public Affairs at DFPI.media@dfpi.ca.gov.