Wise, the fintech payments company, has had its application for a US banking licence rejected by the Office of the Comptroller of the Currency (OCC) due to deficiencies in its anti-money laundering measures and an insufficient understanding of US banking laws. The decision marks a significant regulatory setback for the company, which had applied for the licence more than a year ago in an effort to gain direct access to Federal Reserve payment systems and expand its US offerings.
The OCC cited “longstanding deficiencies” in Wise’s anti-money laundering and counterterrorist financing controls as a major factor in the rejection. Additionally, the regulator highlighted concerns about the inexperience of Wise’s proposed US management team, noting that the candidates lacked the fiduciary expertise typically required for national banks. The regulatory body said that the failure to nominate directors and managers with adequate compliance knowledge did not bolster the application’s strength.
Wise, which was founded in 2011 by Estonian entrepreneurs Kristo Käärmann and Taavet Hinrikus, offers low-cost international money transfers and now serves approximately 19 million customers worldwide. In May, the company shifted its primary stock market listing from the London Stock Exchange to Nasdaq in New York, aiming to tap into a larger pool of investors and the US technology market. The banking licence was seen as a key step in expanding its US presence.
In response to the rejection, Wise stated that it had significantly enhanced its compliance frameworks since submitting the original application and viewed the OCC’s concerns as reflective of historical issues that the company has been actively addressing. Wise also said it plans to submit a new application under a more recent regulatory framework established by the US President Donald Trump’s Genius Act, which regulates stablecoin companies and related financial technology firms. The company emphasized that the OCC’s decision does not impact its current US operations, which continue under existing money transfer licences.
The application’s denial comes amid a backdrop of regulatory scrutiny for Wise. Last year, Wise’s US subsidiary was fined $4.2 million for violations of the Bank Secrecy Act and anti-money laundering regulations. More recently, Belgian authorities opened an investigation into the company related to money laundering concerns, focusing on transactions totaling roughly €500 million. Wise is cooperating with prosecutors in Brussels, where it maintains significant European operations, and has asserted its commitment to preventing misuse of its platform by illicit actors.
Despite these challenges, regulatory environments in the US remain competitive, with the OCC recently approving multiple banking licences for fintech and cryptocurrency-related firms, including companies such as Circle and Ripple. Other fintech groups such as Revolut and Klarna are also awaiting decisions on their US banking licence applications.
Wise’s rejection underscores the increasing emphasis US regulators place on robust anti-financial crime measures and experienced management within fintech firms seeking banking charters. The company intends to leverage evolving regulatory guidelines as it seeks approval for a trust charter that would allow provision of fiduciary and custodial services to US customers.