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Fintech Wise Agrees to Fix Money Laundering Controls After EU Orders
- Written by Andrea Miliani Former Tech News Expert
European regulators forced the British company Wise to fix anti-money laundering measures after the Belgian National Bank discovered the fintech lacked relevant information about its customers.
In a Rush? Here are the Quick Facts!
- FT revealed that Wise was forced by European regulators to fix anti-money laundering measures
- The National Bank of Belgium reviewed the company in 2022 and revealed that hundreds of thousands of customers didn’t provide proof of residence
- Wise worked on a remediations plan approved by the regulator and said they have fully implemented the recommendations
The story was revealed by the Financial Times today. Five anonymous sources shared more details of the remediation plan.
People familiar with the matter explained that Wise failed to collect proof of address of hundreds of thousands of users and this was noticed by the Belgian National Bank and reported in 2022.
Wise worked on a remediation plan, approved by the Belgian financial institution, requested users’ proof of address, and froze the accounts of those who didn’t comply with the safety requirements. Within days the fintech had to reorganize its staff to prioritize its anti-financial crime department.
“In 2021, the National Bank of Belgium carried out a routine review of Wise Europe as part of a market-wide exercise in the wake of Brexit,” explained the company to FT in an email. “We worked closely with our regulator in Belgium and have fully implemented their recommendations.”
FT’s report highlights how fast-growing companies can have difficulties dealing with their development and keeping a safe platform.
Multiple fintech companies have grown fast and faced challenges along the way. Earlier year, the American company Synapse froze over 100,000 accounts after declaring bankruptcy, and the U.S. senators urged the fintech to give people their money back.
Other companies have seen more positive outcomes. Revolut, one of Wise’s competitors, recently got a banking license in the United Kingdom.
Photo by Johnny Bhalla on Unsplash
Australia Approves Social Media Ban for Children, Tech Companies Must Comply
- Written by Andrea Miliani Former Tech News Expert
Australia approves the bill to ban social media for children under 16 this Thursday night, one of the strictest regulations across the globe.
In a Rush? Here are the Quick Facts!
- The Australian parliament approved the bill to ban social media access for children under 16
- Prime Minister Albanese expressed his content with the decision
- TikTok Spokesperson said they were “disappointed” with the Australian government
According to Reuters , Australians and tech companies reacted with mixed emotions after learning the news as the debate was still heated earlier this week and has been discussed for months.
On Tuesday, tech giants like Meta and Google urged the government to delay the bill until more data and analysis were made, but the Australian parliament, after considering many arguments, approved the measure led by Prime Minster Anthony Albanese.
“Platforms now have a social responsibility to ensure the safety of our kids is a priority for them,” said Albanese today. “We’re making sure that mums and dads can have that different conversation today and in future days.”
Watch | Australian Prime Minister Anthony Albanese said on November 29 that social media platforms now have a responsibility to ensure the safety of children, after the country’s parliament passed a bill banning those under the age of 16 from using the services pic.twitter.com/CRC1Gu5o9g — Forbes India (@ForbesIndia) November 29, 2024
Albanese stands by his initiative and considers that this is the best alternative to protect children from the risks and damages they face when using social media. Tech companies insist that it was a rushed move but will comply.
“The task now turns to ensuring there is productive consultation on all rules associated with the Bill to ensure a technically feasible outcome that does not place an onerous burden on parents and teens and a commitment that rules will be consistently applied across all social apps used by teens,” said a spokesperson from Meta to CNN .
A spokesperson from TikTok said they remain concerned about the risks. “We’re disappointed the Australian government has ignored the advice of the many mental health, online safety, and youth advocacy experts who have strongly opposed the ban,” they said to Reuters.
Social media platforms that don’t comply with the new law will face fines of up to $32 million.
The new age verification system will begin its trial period in January and the ban will take effect in a year.
