Wise froze company funds (Transferwise)

[elussive]

Hi.

I've got a question and also asking for advice.

I've have UK based LTD, I opened business Wise account. Registration was quite simple, however after somewhile Wise put on security checks all my incoming transactions, for around 5000 euros.

At first they mentioned 10 days, but now it's been 5 weeks.


Wanted to ask, does anyone had a similar experience with Wise? And how did you resolved issue?

Also wanted to know some reilable alternatives.

Thanks a lot

 

[Sols]

I have received (and have seen others receive) requests for information for Wise many times. Same as with any other financial institution. Review times with Wise tends to be just one or a few business days. Have always provided full set of supporting documents (agreements, invoice, proof of payment, whatever else is relevant).

If it's been five weeks, they probably suspect you of something illegal or indications that your business activities aren't in line with their terms of service and AUP. Unfortunately, it's unlikely that Wise will continue to support your business. There is probably something about your activities that they don't like.

Whatever the outcome, it's always good to have multiple accounts nowadays. Depending on your business activities and size of business, there are other options you could consider.

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This is the probably the answer to your question.

 

[elussive]

Sols said:
I have received (and have seen others receive) requests for information for Wise many times. Same as with any other financial institution. Review times with Wise tends to be just one or a few business days. Have always provided full set of supporting documents (agreements, invoice, proof of payment, whatever else is relevant).

If it's been five weeks, they probably suspect you of something illegal or indications that your business activities aren't in line with their terms of service and AUP. Unfortunately, it's unlikely that Wise will continue to support your business. There is probably something about your activities that they don't like.

Whatever the outcome, it's always good to have multiple accounts nowadays. Depending on your business activities and size of business, there are other options you could consider.
Click to expand...

Hello.

Thanks a lot for detailed reply. It's very strange, because I mostly received payments from Stripe. And few transfers from individual persons.

I'm currently considering opening offshore bank account private as well as business. I gues this will happend less likely with a proper bank. Any suggestions on that?

 

[Sols]

Make sure you present your business wholly and transparently to the financial institutions. Different banks and EMIs have different risk appetites and understandings of businesses. A good EMI is one that understands and accepts your business, and ideally does so with attractive pricing and service quality.

In any case, ensure that each transaction can be backed up by an agreement, invoice, and other supporting documents. Showing financial statements (year results and/or management accounts) is also helpful.

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This is the probably the answer to your question.

 

[tyrexoid]

elussive said:
Hello.

Thanks a lot for detailed reply. It's very strange, because I mostly received payments from Stripe. And few transfers from individual persons.

I'm currently considering opening offshore bank account private as well as business. I gues this will happend less likely with a proper bank. Any suggestions on that?
Click to expand...

try Mercury bank, they're also crypto friendly, also Payoneer service is nice but I didn't use it in the past years, it was pretty good back then.. I think they still operate.. also Revolut of course, so popular.

My advice would be of course to keep as many accounts as long as they don't cost much (up to like 5$/mo or maybe 10$/mo, still worth it for the backup and convenience), and their debit cards (cos if you travel, ATMs will capture your cards once in a while for no reason), also why not use paypal for business? it works well and links to all accounts that you need for withdrawals and deposits. Crypto exchanges and services like crypto.com are good to send to someone who's crypto savvy and has their own on-off ramps to fiat, so one way is crypto directly address to address, but both persons\companies need to have linked banks. I personally use the following: Bank of America [my favorite so far, no issues in the past 3 years, including crypto deposits/withdrawals], Chase, Schwab, Mercury, Revolut, BlockFi, Crypto.com, PayPal, and 2 banks in two other countries, one in Euro, another in native local currency. I use Wise a lot actually, with all of the above, to move large sums to pay for something, if I pay directly to bank account, it's cheaper that wire transfer all the time yeah. Wise can charge any card or any account linked, pretty cool service. But diversification is best, if one says "blah blah" you just withdraw all funds, close account (or ignore them if their request is annoying) and just keep using other services, that seems a good strategy, depends on situation (all my accounts are within 10k$-100k$ range, not keeping more in one, when I'll have more money I'll open a few more accounts. I'm afraid to get a large sum locked or delayed ns2 that'd be pretty bad).

Last edited: Dec 14, 2021

 

[Pup]

It's a really simple point: with Wise if you receive a payment from a EU customer and the payment comes from a bank (no EMI) there is not any problem also for large payment (150/200k)

 

[yngmind]

I have 2 wise accounts, one of them got shut down for no reason.

Tried to ask them why, they told me that they can't tell and I can't use their service anymore.

The second one is fine.

I wouldn't really depend on the EMI's if you have a stable business, it's always good to have a real bank account.

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[JayJayJay]

yngmind said:
I have 2 wise accounts, one of them got shut down for no reason.

Tried to ask them why, they told me that they can't tell and I can't use their service anymore.

The second one is fine.

I wouldn't really depend on the EMI's if you have a stable business, it's always good to have a real bank account.
Click to expand...

Did they give you back the money?

 

[cuno]

Sols said:
Make sure you present your business wholly and transparently to the financial institutions. Different banks and EMIs have different risk appetites and understandings of businesses. A good EMI is one that understands and accepts your business, and ideally does so with attractive pricing and service quality.

In any case, ensure that each transaction can be backed up by an agreement, invoice, and other supporting documents. Showing financial statements (year results and/or management accounts) is also helpful.
Click to expand...

how would you do that to avoid account frozen ?

 

[Sols]

cuno said:
how would you do that to avoid account frozen ?
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Do what exactly?

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This is the probably the answer to your question.

 

[cuno]

I mean by doing what you say, avoid the account to be frozen ?

 

[Sols]

I'm confused. In my message, I wrote exactly what you need to do.

As long as you run a clean, legitimate business whose activities are within the financial institution's AUP/risk appetite and as long as you can provide adequate supporting documents for any transactions (invoices that you have issued, agreements that you have signed with customers/vendors), the risk of having an account frozen is very, very low.

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This is the probably the answer to your question.

 

[JohnnyDoe]

Sols said:
I'm confused. In my message, I wrote exactly what you need to do.

As long as you run a clean, legitimate business whose activities are within the financial institution's AUP/risk appetite and as long as you can provide adequate supporting documents for any transactions (invoices that you have issued, agreements that you have signed with customers/vendors), the risk of having an account frozen is very, very low.
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Not true. The risk of having any account, small or big, 100% legit, frozen is always high.

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[Sols]

carlo39 said:
Not true. The risk of having any account, small or big, 100% legit, frozen is always high.
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Isn't it strange that some people have multiple banking relationships (including companies in high risk industries, high or low volume) without getting their accounts frozen, and then some people seem to get accounts frozen left and right?

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This is the probably the answer to your question.

 

[JohnnyDoe]

Sols said:
Isn't it strange that some people have multiple banking relationships (including companies in high risk industries, high or low volume) without getting their accounts frozen, and then some people seem to get accounts frozen left and right?
Click to expand...

Very strange indeed. Or not, given the level of incompetence of the people working in compliance departments. Who, don't forget, work there only because they don't have a better alternative.

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