Wise , the London-headquartered company that made its name offering international money transfers and is reportedly planning an IPO, has accused its former banking partner in Brazil of a “smear campaign” after it was accused of fraud — claims that Wise says are “false and unfounded.”
The war of words between Brazil’s MS Bank and Wise appears to have followed Wise securing its own FX broker license from Brazil’s Central Bank in January, meaning that its partnership with MS Bank would soon come to an end. The following month, without prior notice, MS Bank terminated its contract with Wise and informed customers that it was launching its own transfer service called CloudBreak.
Without a banking partner and before it had time to begin testing transfers under its own FX broker licence, Wise was forced to temporarily suspend its Brazil corridor. On March 12, Wise was able to open its Brazilian real (BRL) to U.S. dollar (USD) corridor again, under its own license, and then things got hostile.
In an email sent to customers the same day — and shared with TechCrunch earlier this week — MS Bank alleges that Wise had been committing fraud via customer accounts. Those allegations were also repeated in a < a href="https://www.youtube.com/watch?v=zXKcGs8xZL0&t=3s"> YouTube video and text created on MS Bank’s site and focussed on a divergence in the way transactions are clinical on a customer’s account are considering Brazilian Central Bank.
Dished up subsequent blog post, Wise supplies a detailed and robust reason of the discrepancy in the way buys are recorded, categorically denying any wrongdoing, and contacts out MS Bank to suit launching an alleged “defamation campaign. ”
In a statement provided to help you TechCrunch, Wise says the claims “have been timed to raise awareness of the launch of this ex-partner’s competing product. We are both not aware of any lookup or accusations against Informed by any regulator to other authority, either having Brazil or anywhere else, ” adds the fintech little}. “We are certain that when not responsible for any deceptive or improper activity working with customer data and/or investment. Wise is taking felony measures to address this problem. ”
Wise’s statement in full:
In recent weeks Beneficial has been the subject of a coat campaign by a former online business partner in Brazil. Typically the accusations have been timed to lift awareness of the launch of this ex-partner’s competing product. From the moment not aware of any investigate or accusations against Sensible by any regulator or maybe other authority, either here in Brazil or anywhere else.
Wise maintains its commitment to the transparency as well as the security of our operations for our more than 10 million regulars around the world. We are certain that we have not responsible for any suspicious or improper activity with the use of customer data and/or income. Wise is taking respectable measures to address this variance.