Wise has been ordered to pay nearly US$2.5 million in penalties by US regulators due to “a series of illegal actions,” including misleading advertising regarding its fees.
On January 30, the US Consumer Financial Protection Bureau (CFPB) imposed a US$2 million civil penalty on Wise, alongside $450,000 in customer compensation, for inaccurately advertising its fees and failing to adequately disclose exchange rates and other charges.
Wise, which promotes itself as a provider of affordable and fast cross-border payments with no hidden costs, was found to have “misled” US customers by suggesting they would incur lower ATM fees while also failing to properly disclose exchange rate details.
Regulators additionally determined that Wise did not refund remittance fees within the legally required timeframe when payments failed to arrive on time.

“By deceiving customers, Wise gave itself an unfair advantage over other competitors in the remittances market. New technology can help make money transfers cheaper and more convenient, but companies must be truthful and live up to long-standing law,”
stated CFPB director Rohit Chopra.
Wise’s shares remained largely unchanged in early trading on the London Stock Exchange on January 31.
The company acknowledged that it had “inadvertently been operating in ways the Bureau deemed necessary to address,” explaining that the issues were primarily “technical” in nature. However, in some instances, certain US customers had been charged “slightly incorrect fees,” which Wise said it had “proactively and voluntarily compensated in full.”
The firm added:
“While Wise strongly disagrees with the CFPB’s characterisation of Wise’s conduct, we worked with the CFPB in good faith to conclude the matter.”
The investigation, conducted between 2020 and 2021, led Wise to pay $450,000 in compensation to affected customers.
Founded in 2011, Wise was celebrated as a success story in London when it debuted on the London Stock Exchange a decade later.
However, its global expansion has faced challenges. In 2021, the company was fined US$360,000 by financial regulators in the United Arab Emirates over lapses in its anti-money laundering controls.
Additionally, in 2022, European regulators compelled Wise to implement a formal remediation plan after discovering it lacked proof of address for hundreds of thousands of customers, as previously reported by the Financial Times.
Wise has also been actively expanding its presence in the Asia Pacific region.
The company operates in eight markets, including Australia, New Zealand, Hong Kong, India, Indonesia, Japan, Singapore, and Malaysia.
Wise has established partnerships with over 85 global entities, such as Indonesia’s Bank Mandiri, IndusInd Bank in India, Tiger Brokers, GoTrade, Aspire, Shinhan Bank, Australia’s digital bank Up, Deel, Hong Kong’s ZA Bank, and Agoda.
In March 2024, Wise integrated with Singapore’s PayNow network, enabling tourists to make QR payments to local merchants via its app.
The company has also expanded its Singapore office, doubling its workforce to 450 employees. As of FY24, Wise’s Asia Pacific operations have become its second-largest revenue contributor, with a 33.7% year-over-year increase.
Featured image credit: edited from freepik