Kristo Kaarmann fined £350,000 for failing to report tax issue
- Kristo Kaarmann was fined for not disclosing a significant tax issue to the FCA during a fitness assessment in 2021.
- He had previously been fined by HMRC for capital gains tax issues for the 2017-18 tax year.
- Wise's board confirmed Kaarmann's ongoing fitness for his role, following their own investigation into the matter.
In the UK, Kristo Kaarmann, the co-founder and CEO of Wise, was fined £350,000 by the Financial Conduct Authority (FCA) due to his failure to promptly report a significant tax issue. This incident dates back to a 2021 review of his fitness for his position, during which it was revealed that Kaarmann had knowledge of a prior tax fine from HMRC for £365,651 linked to a capital gains tax liability for the 2017-18 tax year. The FCA emphasized that Kaarmann was aware of these important tax matters for over seven months but did not disclose them, which raised concerns about his reliability as a leader in the financial sector. Wise, which went public on the London Stock Exchange in 2021, reaffirmed that the FCA's investigation did not indicate any concerns regarding Kaarmann's ongoing suitability for his position. Following a board-ordered investigation, Wise concluded that Kaarmann was fit to continue in his role, although the board mandated remedial actions to ensure his personal tax affairs were managed appropriately. Kaarmann expressed his relief over the closure of the matter, emphasizing his commitment to Wise's mission and future goals. This incident highlights the strict regulatory environment governing financial firms in the UK and the high standards of transparency expected from their leaders.