Wise CEO Fined £350,000 by UK Regulator for Tax Disclosure Failures

Kristo Kaarmann, co-founder of Wise, was penalized for not informing the Financial Conduct Authority about significant tax issues and fines from 2017.

Kristo Kaarmann, CEO of Wise, was fined by the FCA for failing to report a £365,651 fine from HMRC related to unpaid capital gains tax on a 2017 share sale.
The FCA deemed Kaarmann's failure to notify them of the tax issues as 'careless' but not 'deliberate or reckless,' reducing his potential fine from £500,000 to £350,000.
Kaarmann's name was added to HMRC's public tax defaulters list in September 2021, prompting the FCA's investigation after media inquiries.
Despite the fine, Wise's board of directors conducted an internal review and found Kaarmann fit to continue in his role, requiring him to improve his tax management.
The FCA's decision follows Wise's recent financial performance, with the company reporting a 17% increase in underlying income earlier this month.