The UK financial regulator is investigating the co-founder of payment company Wise after he failed to pay his taxes.
Kristo Käärmann was included in HM Revenue and Customs ’deliberate tax delinquent list in September 2021, after failing to meet its tax obligations. He failed to pay £ 720,495 for the 2017-18 tax year and received a fine of £ 366,000, the tax authority said.
Wise said Monday that the Financial Conduct Authority (FCA) had “initiated an investigation into the regulatory obligations and standards to which Kristo is subject,” after sharing details of his own investigation.
Wise, formerly known as TransferWise, is one of London’s leading financial or fintech technology companies, after its shares were listed on the London Stock Exchange in July 2021, in a boost for the City.
Käärmann and its co-founder, Taavet Hinrikus, started Wise in 2011 after the former had trouble transferring money from a UK bank account to an account in his native Estonia without paying exorbitant commissions.
The regulator has the power to rule that Käärmann is not a suitable and suitable person to be a senior manager of an investment firm, a role he plays because Wise offers stock trading as well as international payments.
Käärmann and Hinrikus became paper billionaires for several months after the listing, which initially valued the company at nearly £ 9bn. Its value peaked at nearly £ 12bn in September, but has since fallen to around £ 4bn, amid concern over growing competition in cross-border payments and the general distancing of technology companies. of rapid growth by investors around the world.
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Käärmann owns 19% of Wise’s shares, a stake of about £ 740 million, while Hinrikus owns 9%, valued at about £ 350 million.
David Wells, president of Wise, said: “The board takes Kristo’s tax non-compliance and the FCA investigation very seriously. After reviewing the matter late last year, the council demanded that Kristo would take corrective action, including the appointment of professional tax advisors to ensure that his personal tax affairs were handled properly.
“The board has also shared details of its own findings, evaluation and actions with the FCA and will cooperate fully with the FCA when required, while continuing to support Kristo in his role as CEO.”