Wise new verification 2023 - How to avoid investigation?

[rainmaker]

Hi,

So apparently Wise has rolled out new terms of service recently or something like that. They sent a notification to verify before september 20th and I forgot to do it, my account is now blocked until I complete the verification. They are asking the typical "send ID again", etc. I've had the account for several years and it's the account where most of my money is sitting (big mistake I know). I use it for my media buying endeavours and also daily life expenses.

I'd like to avoid an investigation but I'm having trouble with some steps of the automatic process. The problem is the part where they ask about how you make the money. They give several options that don't match my case like: salary, pension, etc... so I select "other" and specify "Affiliate payments". Then they ask about volume and how much you make in a year, I can't really predict this because media buying is so volatile (I make a guess and continue). The final step is to either connect a local bank account so they can check my answers themselves (I guess automatically) or send official documents as proof that my funds are legit. And here comes the biggest issue: I use this Wise account for making my money. If they check my local bank account that I barely use it won't match my answers, and I don't really have any documents to provide like bank extracts and such (they would have to be from their own platform!).

I've never faced this last step in previous verifications and I don't know how to proceed from here, I have 2 options that I can see:
1. Connect the local bank account and pray it doesn't trigger a flag because it doesn't match the answers provided.
2. Contact support and pray I don't trigger an investigation because of my media buying stuff.

I was hoping to pass the verification through the automatic process like I always had done in the past. I was flying under the radar until now, I'd like to keep it that way if possible.

Has anyone faced a similar situation or have any insights? Is there a way out of this? Any advice would be greatly appreciated!

 

[latindev]

And here comes the biggest issue: I use this Wise account for making my money.

So basically you have been violating their terms of service for years, move your money out as soon as you can

 

[wellington]

Probably some bank fraud in there.

 

[rainmaker]

So basically you have been violating their terms of service for years, move your money out as soon as you can

I don't hink I have, as far as I know you are allowed to receive payments from e-commerce and other platforms. Tons of affiliate marketers use Wise to receive payments:

1.4 You may only use your Wise Account Number to receive funds into your Wise Account for the following purposes:​

• receiving your own salary and/or wages;
• receiving payouts from e-commerce and freelancer platforms;
• receiving payments from family, friends or other people you know for personal purposes;
• receiving payments from your clients and other third parties for the purpose of business payments.
• You may not use your personal Wise account to receive business payments.

It's true that affiliate marketing is bit of a grey area and I prefer not to draw any attention.
My account is blocked right now so I can't move the money, too late in that regard.

Probably some bank fraud in there.

No bank fraud or anything like that at all. This is offshorecorptalk, shouldn't take much to figure it out.

 

[latindev]

I don't hink I have, as far as I know you are allowed to receive payments from e-commerce and other platforms. Tons of affiliate marketers use Wise to receive payments:

Yes you are, sorry to inform you that. Many people also launder money using HSBC, does that mean is under their terms of services? Wise is clear about that you should not use your account to receive business payments and affiliate marketing is a business payment because you are not selling products nor offering a service within a platform... unless you're using a marketplace platform specifically for affiliated marketing, which in that case is easier to explain Wise how you get your earnings.

 

[rainmaker]

Yes you are, sorry to inform you that. Many people also launder money using HSBC, does that mean is under their terms of services? Wise is clear about that you should not use your account to receive business payments and affiliate marketing is a business payment because you are not selling products nor offering a service within a platform... unless you're using a marketplace platform specifically for affiliated marketing, which in that case is easier to explain Wise how you get your earnings.

In that case I'm in trouble, all the more reason to absolutely avoid drawing any attention in this process if possible. All payments come from Clickbank, I don't know if they could be considered as a marketplace. They do define themselves as such but I'm not sure if Wise would do so.

 

[Alexmorgan]

Your account is gone for good but dont worry they will ask you to where you want them send your money but it may take very long time

 

[myhand]

So basically you have been violating their terms of service for years, move your money out as soon as you can

Yeah looks like he got caught

 

[Sols]

Wise is a superb EMI, so long as you comply with their terms and fit in their Acceptable Use Policy. Maybe I didn't read well, but I don't understand if you have a business account or personal account. If you have been using your personal account for business purposes, which affiliate marketing is, it unfortunately sounds like Wise is about to kick you out.

If they seem cooperative, you could offer to stop transacting business-type transactions on your personal account and assure them you'll form a company, move to a business account, and resume transactions on that account henceforth. I've seen that work in many cases when people have used their personal accounts for business purposes, and the bank/EMI is still happy to work with the client under appropriate conditions.

 

[rainmaker]

Wise is a superb EMI, so long as you comply with their terms and fit in their Acceptable Use Policy. Maybe I didn't read well, but I don't understand if you have a business account or personal account. If you have been using your personal account for business purposes, which affiliate marketing is, it unfortunately sounds like Wise is about to kick you out.

If they seem cooperative, you could offer to stop transacting business-type transactions on your personal account and assure them you'll form a company, move to a business account, and resume transactions on that account henceforth. I've seen that work in many cases when people have used their personal accounts for business purposes, and the bank/EMI is still happy to work with the client under appropriate conditions.

Yes it is a personal account, so the acount closing seems to be a very likely outcome. Maybe they let me go with a warning if I approach the situation in the right way.

Even so, it seems that this has happened as part of an automated process. I haven't raised any flags myself that triggered the verification, so to speak. Let's assume for a moment that I didn't break the TOS and my only problem was that I can't connect a bank account that justifies my funds, because all that activity I've done with them. The only other option they give is to provide documents. What would one do in that case? Send them their own bank extract as proof?

The real problem is that they're asking for another account to check that funds are legit, when they have the answer to that in their own system.

 

[Sols]

Even so, it seems that this has happened as part of an automated process. I haven't raised any flags myself that triggered the verification, so to speak. Let's assume for a moment that I didn't break the TOS and my only problem was that I can't connect a bank account that justifies my funds, because all that activity I've done with them. The only other option they give is to provide documents. What would one do in that case? Send them their own bank extract as proof?

To be pedantic — and the people making this decision will be — you did break the TOS by operating a business on a personal account. However, that often isn't a huge deal if it's a legitimate business and you can chalk it up to genuine mistake.

As for document you can show them: get statements/equivalent from Clickbank proving how the money was generated. Provide screenshots showing that the payout account is your personal Wise account. Lastly, add bank statements from Wise. If that genuinely is your source of funds, that's all you can show them. They might not understand or accept it, though.

 

[rainmaker]

To be pedantic — and the people making this decision will be — you did break the TOS by operating a business on a personal account. However, that often isn't a huge deal if it's a legitimate business and you can chalk it up to genuine mistake.

As for document you can show them: get statements/equivalent from Clickbank proving how the money was generated. Provide screenshots showing that the payout account is your personal Wise account. Lastly, add bank statements from Wise. If that genuinely is your source of funds, that's all you can show them. They might not understand or accept it, though.

I understand what you mean and you are totally right about that. Thank you for the help figuring out what documents I could present, that was very useful.

After thinking about it a bit more, I just see 2 ways to proceed forward for my case:

1. Send them the documents you suggested in the automatic process.
2. Contact support and explain that Wise is my main account, so I can't link a third party account to prove anything.

My only tiny hope for the second option would be that they look into the account (the same way they would look into a linked third party account) and they give me a warning without asking for documents.

 

[wellington]

TOS are not law mind...

Under UK Law you can run a company if not LTD under your personal account but its best to seggregate.

I don't even believe or at least it wasn't, illegal to operate a LTD on a personal account, just frowned upon and likely causes issues with the LTD veil...

Having said that it's also not Illegal to operate a overseas company via a personal account, again segregation...

So at worst they will do SAR's, freeze funds and eject and then send your funds....

You can speed up the process by annoying the CEO via email, and laying out the facts, evidence and your error -> speed up the process for getting funds unfrozen and transferred if that has occured.

 

[rainmaker]

TOS are not law mind...

Under UK Law you can run a company if not LTD under your personal account but its best to seggregate.

I don't even believe or at least it wasn't, illegal to operate a LTD on a personal account, just frowned upon and likely causes issues with the LTD veil...

Having said that it's also not Illegal to operate a overseas company via a personal account, again segregation...

So at worst they will do SAR's, freeze funds and eject and then send your funds....

You can speed up the process by annoying the CEO via email, and laying out the facts, evidence and your error -> speed up the process for getting funds unfrozen and transferred if that has occured.

For sure, but unfortunately I don't think they care about that. I also don't see what's wrong about getting payments in your personal account. In fact, they do allow e-commerce and freelancer payouts. There's also this point in the TOS I posted earlier about allowed purposes that I don't fully understand:

• receiving payments from your clients and other third parties for the purpose of business payments.

What does this mean exactly?

I definitely wouldn't want to endure a SAR procedure, I heard they take months to give your money back.

 

[latindev]

TOS are not law mind...

Under UK Law you can run a company if not LTD under your personal account but its best to seggregate.

I don't even believe or at least it wasn't, illegal to operate a LTD on a personal account, just frowned upon and likely causes issues with the LTD veil...

Having said that it's also not Illegal to operate a overseas company via a personal account, again segregation...

So at worst they will do SAR's, freeze funds and eject and then send your funds....

You can speed up the process by annoying the CEO via email, and laying out the facts, evidence and your error -> speed up the process for getting funds unfrozen and transferred if that has occured.

No one is saying is something ilegal, it's just a violation of the terms of services which the user accepts once they sign up into the service so the business offering the service can just close down the account without any notice. Most of the time that only means they freeze the funds, investigate them and then let you withdraw to a bank account.

If OP can get enough documentation there won't be any loss of funds, it's just a pain and it will take time but if everything is legit it shouldn't cause any issue beside that.

2. Contact support and explain that Wise is my main account, so I can't link a third party account to prove anything.

You need to get another account, we know it's difficult sometimes but you seriously need it. If they already locked the funds there won't be any other way to withdraw the funds if not to a real bank account in your own name with your current address (the address most of the time is not asked but better to be prepared)

 

[rainmaker]

You need to get another account, we know it's difficult sometimes but you seriously need it. If they already locked the funds there won't be any other way to withdraw the funds if not to a real bank account in your own name with your current address (the address most of the time is not asked but better to be prepared)

Yeah I have to just accept it, would an EMI work for that? The main problem is going to be the bank or EMI asking questions about it too. It's not a big figure (less than 20k) but I have no documents to support it (other than bank statement from Wise and Clickbank statements for sales and payouts).

Is there any EMI that will accept the money without much hassle? Any recommendations are welcome.

Another question, when they return the money after account closure... is it a transfer from Wise itself or a transfer from your own account in your name?

 

[latindev]

other than bank statement from Wise and Clickbank statements for sales and payouts

That's enough because is the real way the funds were acquired, give it to them in combination with your tax return. Once they see both match it will be easy to explain it

Another question, when they return the money after account closure... is it a transfer from Wise itself or a transfer from your own account in your name?

Normally it's from Wise itself, nothing with your name on it.

 

[DGTLOTC]

From the payments industry perspective. The most likely situation is that even if your documents aren't satisfactory they will just ask you to make a 1st party payment and digest the balance off to another account.

might take a bit of time but they will do it

 

[rainmaker]

From the payments industry perspective. The most likely situation is that even if your documents aren't satisfactory they will just ask you to make a 1st party payment and digest the balance off to another account.

might take a bit of time but they will do it

I'm sorry, I don't fully understand what you meant. What does "1st party payment" mean?

 

[countryfree]

Wise is a good company. You should try to upgrade to a business account.