For our customers sending money with Wise or holding money in the Wise account in the US, in keeping with US state obligations, we protect our customers’ funds in a mix of cash in leading commercial banks and investments in secure liquid assets, primarily government bonds. We also keep your money separate from the money we use to run our business.
Here’s an overview of where we predominantly hold customer money in the US:
|GOLDMAN SACHS BANK USA
|JPMORGAN CHASE BANK, N.A.
|Secure Liquid Assets
|US Government Bonds
We hold funds in cash with the banks and in assets that are deemed low risk and highly liquid in order to diversify risk and maximise liquidity. We take this approach to make sure your money is highly liquid and therefore always available to you.
We limit the term-to-maturity of any US Government Bonds we buy to 2 years or less and the average duration of funds held as US Government bonds is less than 6 months.
We are not a bank, which means we do not lend out our customers’ money to people or businesses. It also means our money transfer service and Wise account balances where you haven't opted into interest are not subject to Federal Deposit Insurance Corporation (FDIC) insurance.
If you've opted in to receive annual percentage yield (APY) on your USD balance with Wise’s interest feature you are able to take advantage of up to $ 250,000 in FDIC pass-through insurance on your USD Balance via our Program Bank. (See Program Agreement to learn more). *See Disclaimer below.
Who regulates Wise?
In the US, Wise US Inc is licensed as a money transmitter in the states listed here, and supervised by regulatory authorities in each of those states.
Wise US Inc. is registered with the Financial Crimes Enforcement Network (FinCEN) and renews its registration annually. We are also supervised by the Consumer Financial Protection Bureau (CFPB).
In other US states and/or territories, money transmission services are offered by our partner financial institution Community Federal Savings Bank, which is supervised by the Office of the Comptroller of Currency.
We follow a strict set of rules set by our regulators in each country in which we operate, such as the Financial Conduct Authority (FCA) in the UK, the National Bank of Belgium (NBB) in Europe and 48 state regulators in the USA. These regulators protect the market in which we operate.
*Disclaimer: The current Program Bank is JPMorgan Chase Bank, N.A., see Appendix 1 of the Program Agreement for the most updated list of Program Bank(s). Eligible customers must opt in to the interest feature. Participants will have the balance of their USD funds held in their Wise Account “swept” into a Federal Deposit Insurance Corporation (“FDIC”) insured interest-bearing account at one or more participating banks (each, a “Program Bank”) that will hold and pay interest on the deposit funds. For more information on FDIC insurance coverage, please visit www.FDIC.gov. Customers are responsible for monitoring their total assets at each of the Program Bank(s) to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The Program is not intended to be a long-term investment option, checking or savings account, investment contract or security.