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Are those fintech companies under any financial regulatory authority? If my bank pulls any kind of stuff like that, dropping the magic "I will have to report t

Are those fintech companies under any financial regulatory authority? If my bank pulls any kind of stuff like that, dropping the magic "I will have to report this to the Federal Financial Supervisory Authority" gets any and all gears unstuck right quick. Because this is absolutely unacceptable, and my local financial regulator agrees (and levies substantial fines accordingly). Might be an EU thing, though.

okanat 1y ago
Some of them like Revolut and N26 are. German federal authority actually forced N26 to limit customer acquisition until they fixed their money laundering issues. Wise is a "payment processor" so it isn't regulated to the same standard.
- alterom 1y ago
  >Wise is a "payment processor" so it isn't regulated to the same standard. Which standard? In the US, the standard in question is "money transmitter", regulated on the state level. In California, both Revolut and Wise are licensed by DFPI: Wise has MTL (Money Transmitter License) in California, Revolut has a broker license: Revolut: https://dfpi.ca.gov/search-result-detail/?id=304600 https://dfpi.ca.gov/search-result-detail/?id=304600 Wise: https://dfpi.ca.gov/regulated_entity/wise-us-inc/ https://dfpi.ca.gov/regulated_entity/wise-us-inc/ FinCen guidance on the distinction between the to two is not the easiest read, but my takeaway is that both of these companies would be registered FinCen too as MSB's (money service but businesses to https://www.fincen.gov/resources/statutes-regulations/guidance/application-definition-money-transmitter-brokers-and https://www.fincen.gov/resources/statutes-regulations/guidan... And indeed, here's Wise's MSB registration: https://www.revolut.com/en-US/blog/post/changes-for-revolut-us-what-you-need-to-know/ https://www.revolut.com/en-US/blog/post/changes-for-revolut-... Revolut doesn't have on the... because they outsource money handling to an actual bank, FDIC insured and all: https://www.revolut.com/en-US/blog/post/changes-for-revolut-us-what-you-need-to-know/ https://www.revolut.com/en-US/blog/post/changes-for-revolut-... So, doesn't appear like Wise is any less regulated.
csomar 1y ago
They are and Wise certainly is given how big and integrated they are. The problem is that most of the time they are blocking your account because of regulation, so they have checked that box and covered their a*s.
- pbmonster 1y ago
  Well, if they are repeatedly requesting paperwork you've already submitted, the fault is clearly with them - and they are not blocking because of regulations, but because they are incompetent. This won't get them out of being fined.
alterom 1y ago
>Are those fintech companies under any financial regulatory authority? In the US, they need to be licensed on a state level. E.g.: they'd need to have an MTL (Money Transmittance License) in California, regulated by DFPI: https://dfpi.ca.gov/regulated-industries/money-transmitters/ https://dfpi.ca.gov/regulated-industries/money-transmitters/ So, yes, they are.
vsl 1y ago
> Might be an EU thing, though. So is Wise: > All investment services are provided by Wise Assets Europe AS, incorporated in Estonia under registration number 16267372. Wise Assets Europe AS is authorised and regulated as an investment firm by the Estonian Financial Supervision and Resolution Authority under licence number 4.1-1/174. The registered address is Veerenni 24, 10135 Tallinn, Estonia.

okanat 1y ago

Some of them like Revolut and N26 are. German federal authority actually forced N26 to limit customer acquisition until they fixed their money laundering issues. Wise is a "payment processor" so it isn't regulated to the same standard.

alterom 1y ago
>Wise is a "payment processor" so it isn't regulated to the same standard. Which standard? In the US, the standard in question is "money transmitter", regulated on the state level. In California, both Revolut and Wise are licensed by DFPI: Wise has MTL (Money Transmitter License) in California, Revolut has a broker license: Revolut: https://dfpi.ca.gov/search-result-detail/?id=304600 https://dfpi.ca.gov/search-result-detail/?id=304600 Wise: https://dfpi.ca.gov/regulated_entity/wise-us-inc/ https://dfpi.ca.gov/regulated_entity/wise-us-inc/ FinCen guidance on the distinction between the to two is not the easiest read, but my takeaway is that both of these companies would be registered FinCen too as MSB's (money service but businesses to https://www.fincen.gov/resources/statutes-regulations/guidance/application-definition-money-transmitter-brokers-and https://www.fincen.gov/resources/statutes-regulations/guidan... And indeed, here's Wise's MSB registration: https://www.revolut.com/en-US/blog/post/changes-for-revolut-us-what-you-need-to-know/ https://www.revolut.com/en-US/blog/post/changes-for-revolut-... Revolut doesn't have on the... because they outsource money handling to an actual bank, FDIC insured and all: https://www.revolut.com/en-US/blog/post/changes-for-revolut-us-what-you-need-to-know/ https://www.revolut.com/en-US/blog/post/changes-for-revolut-... So, doesn't appear like Wise is any less regulated.

csomar 1y ago

They are and Wise certainly is given how big and integrated they are. The problem is that most of the time they are blocking your account because of regulation, so they have checked that box and covered their a*s.

pbmonster 1y ago
Well, if they are repeatedly requesting paperwork you've already submitted, the fault is clearly with them - and they are not blocking because of regulations, but because they are incompetent. This won't get them out of being fined.

alterom 1y ago

>Are those fintech companies under any financial regulatory authority? In the US, they need to be licensed on a state level. E.g.: they'd need to have an MTL (Money Transmittance License) in California, regulated by DFPI: https://dfpi.ca.gov/regulated-industries/money-transmitters/ https://dfpi.ca.gov/regulated-industries/money-transmitters/ So, yes, they are.

vsl 1y ago

> Might be an EU thing, though. So is Wise: > All investment services are provided by Wise Assets Europe AS, incorporated in Estonia under registration number 16267372. Wise Assets Europe AS is authorised and regulated as an investment firm by the Estonian Financial Supervision and Resolution Authority under licence number 4.1-1/174. The registered address is Veerenni 24, 10135 Tallinn, Estonia.