Money transfer firm Wise has been fined $4.2 million by a coalition of U.S. state regulators—including New York, Massachusetts, California, Texas, Minnesota, and Nebraska—for failing to maintain adequate anti-money laundering (AML) controls.

As part of the multi-state settlement, Wise is required to enhance its AML and counter-terrorist financing (CFT) procedures, improve suspicious activity reporting, strengthen customer due diligence processes, and conduct a full lookback review of previously closed accounts. An independent third party will oversee the company’s corrective actions, and Wise must submit quarterly progress reports to regulators for the next two years.

This isn’t Wise’s first regulatory issue. Earlier in 2025, the company faced a penalty from the CFPB for misleading customers about fees, and in 2022, it was fined in Abu Dhabi for AML compliance failures. It is also undergoing a remediation program in Europe following findings by the National Bank of Belgium. In response to the latest fine, Wise stated that it cooperated fully with regulators during the investigation and continues to invest in its compliance framework to maintain a secure and reliable service for customers.