" does this mean that wallets will be under their control?"

Look at their early Q&A. They mentioned that GAW would act as a central bank. Also mentioned that a central bank would be able to recover funds from someones lost wallet (example they gave was a deceased owner and their heirs needing to gain access).

Based on this along with GAW controlling, what they call prime controllers, I would guess that they either have full control over all wallets (acting as possibly the third party in multi-sig) or they have the ability to alter the blockchain.