London, October 28: Wise CEO Kristo Kaarmann has been fined 3,50,000 pounds by the UK's Financial Conduct Authority (FCA)  for misconduct and failing to disclose tax issues to the regulator. The founder and CEO of Wise, one of the leading money transfer apps, was accused of defaulting on his taxes and not informing FCA about it. 

According to a report by Bloomberg, Wise CEO Kristo Kaarmann, despite being fined 3,50,000 pounds, remained perfectly fit to run the fintech firm's operations. The report mentioned that  Kristo Kaarmann was on the HMRC list for defaulting on his taxes and not informing FCA about it, wrapping up a two-year probe. iPhone 16 Banned in Indonesia: Government Bans Sale of Latest iPhones in Country As Tech Giant Fails To Meet Local Investment Requirement.

The UK's Financial Conduct Authority did not find his conduct lacking integrity. The report said the fine would have been lower, up to 41,000 pounds, but the authority wanted to ensure it delivered  "credible deterrence." Before this, Kristo Kaarmann had paid a significant penalty to HMRC (HM Revenue & Customs) totalling 3,65,651 pounds in February 2021. 

Wise CEO was fined because he did not inform the tax authority of his capital gain tax liability over the sale of shares worth 10 million pounds in 2017. In September 2021, HMRC publically listed Kaarmann on its tax defaulters list. According to other reports, such development and surrounding scenarios influenced the FCA's assessment of him as a senior manager. ‘Have Some Shame’: Kunal Kamra Lashes Out at Bhavish Aggarwal Again After Ola Scooter Catches Fire in Bengaluru, Urges Minister Nitin Gadkari To Look at ‘Plight of Indian Customers’.

Wise CEO Kristo Kaarmann was aware of his tax issues for over seven months; however, he did not appropriately recognise the importance of his unpaid tax liability and did not consider notifying the Financial Conduct Authority. The other reports said that FCA had issued a fine after it concluded the breach of Senior Management Conduct Rule 4. This rule states that individuals must disclose appropriately any information that the FCA would reasonably expect notice of.

(The above story first appeared on LatestLY on Oct 28, 2024 05:36 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).