Federal regulatory body, the Consumer Financial Protection Bureau (CFPB), imposes a penalty of $2.5 million on remittance service provider, Wise, due to rule-breaking in the area of remittances.

Federal regulatory body, the Consumer Financial Protection Bureau (CFPB), imposes a penalty of $2.5 million on remittance service provider, Wise, due to rule-breaking in the area of remittances.

The Consumer Financial Protection Bureau (CFPB) has ordered money transfer platform Wise to pay a penalty of $2.5 million for alleged illegal remittance practices. The penalty, initially set at $2.025 million in January 2025, was later reduced to $44,955.

According to the CFPB order, Wise violated the Consumer Financial Protection Act of 2010 by misleading customers about lower ATM fees, free withdrawals, and other customer perks. The bureau also alleged that Wise failed to properly disclose multiple fees, including credit card funding fees via Apple Pay or Google Pay, exchange rates, required refunds for delayed transfers, and other mandatory disclosures.

The CFPB conducted a routine examination of Wise between June 2020 and May 2021, highlighting certain issues within the company. Wise was found to have misled customers about ATM fees and failed to refund remittance fees in a timely manner.

Despite these findings, Wise has cooperated with the CFPB to address these issues, resolving most of them by November 2022. The company has also implemented recommendations and continues to invest in compliance measures and remediation programs.

It is important to note that this penalty does not relate to broader compliance issues, specifically regarding deficiencies in Wise's anti-money laundering (AML) and countering the financing of terrorism (CFT) programs. As of July 2025, multiple US state regulators have settled with Wise over these issues, resulting in a $4.2 million fine from six states.

The CFPB's allegations about inaccurate fees and failure to disclose exchange rates against Wise led to the initial monetary penalty. However, there is no recent indication of ongoing CFPB allegations specifically on fees beyond the earlier resolved penalty.

Wise, headquartered in New York, has over 3 million customers nationwide and allows customers to send, receive, and store remittances through a mobile app, prepaid accounts, and debit cards. The company ended its partnership with Evolve Bank & Trust in 2023.

The CFPB did not respond to a request for comment regarding the matter. A Wise spokesperson declined to comment on whether the recent CFPB leadership shakeup affected the penalty but stated that the matter had been closed.

[1] Consumer Financial Protection Bureau (CFPB) Press Release, "CFPB Orders Wise to Pay $2.5 Million in Penalties for Illegally Misleading Consumers," 10 January 2025, https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-wise-pay-2-5-million-penalties-illegally-misleading-consumers/

[2] Consumer Financial Protection Bureau (CFPB) Press Release, "CFPB Orders Wise to Pay $44,955 in Penalties for Illegally Misleading Consumers," 1 July 2025, https://www.consumerfinance.gov/about-us/newsroom/cfpb-orders-wise-pay-44955-penalties-illegally-misleading-consumers/

[3] California Department of Business Oversight Press Release, "California Settles with Wise over Compliance Issues," 1 July 2025, https://www.dbo.ca.gov/Newsroom/Press-Releases/2025/California-Settles-with-Wise-over-Compliance-Issues/

[4] New York State Department of Financial Services Press Release, "New York State Department of Financial Services Settles with Wise over Compliance Issues," 1 July 2025, https://www.dfs.ny.gov/about/press/pr2507011.htm

[5] Multi-State Enforcement Action Press Release, "Six States Settle with Wise over Compliance Issues," 1 July 2025, https://www.multistate.us/press-releases/six-states-settle-with-wise-over-compliance-issues/

1. The Consumer Financial Protection Bureau (CFPB) has charged Wise with violating the Consumer Financial Protection Act of 2010 by misleading customers and failing to properly disclose multiple fees, including exchange rates, credit card funding fees via Apple Pay or Google Pay, and other mandatory disclosures, which pertain to the technology aspects of their services.
2. Despite alleged inaccurate fees and failure to disclose exchange rates in the past, Wise has since cooperated with the CFPB to address these issues and has continued to invest in compliance measures and remediation programs, emphasizing their commitment to technological advancement that prioritizes transparency and consumer protection.

Read also: