Why Wise Closes Some Business Accounts and What You Should Know: A Guide for Entrepreneurs
At Launchese, we help entrepreneurs worldwide start their UK companies and often recommend Wise as a trusted financial platform. However, recent experiences show that Wise is increasingly closing business accounts holding large balances. This post explains why, warns you of potential risks, answers your key questions, and suggests safer alternatives.
What is Happening With Wise Business Accounts?
Wise is a licensed Electronic Money Institution (EMI), not a traditional bank. EMIs are regulated differently and must follow strict rules on handling customer funds, including segregating customer money and complying with anti-money laundering (AML) regulations. These requirements create operational and legal burdens when large sums of money are held in accounts.
Due to regulatory enforcement actions in both the US and Europe, Wise has tightened its risk controls. Large business account balances trigger enhanced due diligence and compliance reviews. As a result, Wise often suspends or closes accounts holding big chunks of money to manage regulatory and operational risks.
“Wise is designed for cross-border payments, not as a traditional bank to hold large business reserves.”
Why Does Wise Close Accounts With Large Balances?
- Regulatory compliance: Wise must comply with complex AML laws requiring strict verification and source of funds checks on large balances or transactions.
- EMI license limitations: Unlike banks, Wise cannot lend or invest customer funds and must keep them segregated, creating high operational costs.
- Risk management: Large balances increase regulatory scrutiny and operational safeguarding efforts, which can outweigh revenue from fees.
- Enforcement actions: Recent $4.2 million settlements with US regulators and European remediation plans have accelerated Wise’s cautious stance.
“Holding large balances in Wise triggers regulatory reviews that often lead to account restrictions or closures.”
What Does This Mean For Your Business?
If you keep large business reserves (e.g., £150,000+) in Wise, your account may face review, restrictions, or closure. Businesses have reported frozen accounts and difficulty accessing funds due to verification delays.
Wise is shifting to a model where they want clients to **use their accounts primarily for cross-border payments—not as bank accounts to store large sums**.
“Diversifying your financial providers is essential to protect your business from sudden banking disruptions.”
FAQs: Wise Business Account Limits, Closures, and Alternatives
Q1: Does Wise have a limit on how much money I can keep in my business account?
Wise does not publish a fixed maximum balance limit. However, holding large sums—typically tens or hundreds of thousands of pounds—can trigger enhanced regulatory reviews and compliance checks, leading to account restrictions or closures.
Q2: Why does Wise close or restrict business accounts holding large balances?
Wise is an Electronic Money Institution (EMI), not a traditional bank. Regulatory rules require Wise to segregate client funds and perform strict anti-money laundering (AML) checks. Large balances create higher compliance costs and risk exposure, leading Wise to limit such accounts to control regulatory liability.
Q3: Can I use Wise as a full business bank account?
No. Wise is designed primarily for fast, low-cost international payments and currency exchange. It is not licensed to offer full traditional banking services like lending or large fund deposits.
Q4: What should I do if my Wise business account is frozen or closed?
Immediately provide all requested documents and verification details. Consider seeking professional advice if the issue persists. Diversifying your banking relationships by opening accounts with other providers can mitigate disruption.
Q5: Are all businesses affected by Wise’s stricter policies?
No, restrictions tend to affect accounts holding large balances or those with certain high-risk industries (e.g., gambling, cryptocurrencies). Most small or moderate-sized businesses experience fewer issues.
Q6: What are the best alternatives to Wise for holding larger business funds?
Consider banks and fintech providers such as:
- Tide: UK challenger bank focused on SME business banking needs.
- Revolut Business: Multi-currency accounts with significant transaction and holding limits.
- WorldFirst: Specialist in international business payments with enhanced fund security.
- Mercury: US-based fintech offering business banking suited for startups and tech companies, with no minimum balance requirements and FDIC insurance.
Q7: How should I best use Wise for my business?
Use Wise primarily for receiving and sending cross-border payments efficiently. Keep only operational funds in Wise and avoid holding large reserves there long-term.
Q8: Does Wise have transfer or spending limits I should know about?
Yes, Wise applies transfer limits depending on currency, country, and account type. Card spending and ATM withdrawal limits vary by region but generally exist for business customers.
Q9: How can I prevent my Wise account from being frozen?
Maintain up-to-date business documentation, avoid keeping large balances long-term, regularly monitor your account for unusual transactions, and promptly respond to any Wise verification requests.
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Our Advice: How to Safely Manage Your Business Funds
- Keep minimal operational balance in Wise: Use Wise for cross-border payments and receipts only.
- Use alternative business accounts to hold larger balances: Consider traditional banks or well-regulated fintechs like Revolut, Tide, or WorldFirst for your day-to-day and reserve funds.
- Diversify your financial providers: Maintain accounts with multiple providers to reduce operational risks.
- Stay compliant: Keep your business documentation and transaction records clear and up to date.
Recommended Alternative Business Banking Providers
Tide: UK-focused challenger bank designed for SME needs with integrated accounting features.
Revolut Business: Offers multi-currency accounts, corporate cards, and higher limits for business banking.
WorldFirst: Specialized in international payments with stronger reserve handling capabilities.
Mercury: US-based fintech offering business banking suited for startups and tech companies, with no minimum balance requirements and FDIC insurance.
“Use Wise smartly: keep only what you need for payments and choose trusted banks like Tide, Revolut, or Mercury for your reserves.”
Wise remains an excellent solution for managing cross-border payments cheaply and efficiently, but entrepreneurs should avoid treating it as a full bank account to hold significant business reserves. Employing a mix of financial providers protects your business from sudden disruptions and regulatory risks.
At Launchese, we encourage entrepreneurs to understand the limits of each service and structure their finances accordingly to ensure smooth business operations worldwide. We have proudly supported over 10,000 entrepreneurs worldwide who have faced similar challenges with business accounts and financial management.
Our expert team helps you set up compliant UK companies, navigate banking complexities, and choose the right financial solutions tailored to your needs. If you’re ready to launch or grow your business with confidence and avoid common pitfalls, visit our website today and let Launchese be your trusted partner every step of the way.
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Sources
[1] Wise Business Account Requirements in the UK (2025 … https://wise.com/gb/blog/wise-business-account-requirements-uk
[2] Are there any restrictions on business transfers? https://wise.com/help/articles/2570950/are-there-any-restrictions-on-business-transfers
[3] Complete guide to (Transfer)Wise limits in the UK (2025) https://wise.com/gb/blog/wise-limits-uk
[4] Restrictions for customers based in Türkiye https://wise.com/help/articles/18ewShSmFf7tJ7mm2Zp6H7/restrictions-for-customers-based-in-turkiye
[5] Wise Business Account Limits | US Guide https://wise.com/us/blog/wise-business-account-limits
[6] 9 Key Things to Know Before Opening a Wise Business … https://statrys.com/reviews/open-wise-business-account
[7] Grow with the international business account https://wise.com/gb/business/
[8] OFX business bank account review UK (2025) https://wise.com/gb/blog/ofx-business-account-review
[9] Wise Business Account Review 2025 | Airwallex UK https://www.airwallex.com/uk/blog/wise-business-account-review
[10] Can my business use Wise? | Wise Help Centre https://wise.com/help/articles/2977974/can-my-business-use-wise
