The fintech firm Wise has had its application for a U.S. banking license denied by the Office of the Comptroller of the Currency (OCC) due to alleged deficiencies in its anti-money-laundering (AML) checks and a lack of sufficient experience among its proposed management team.
The OCC stated that the application was incompatible with the Federal Reserve's new policies for payment system access. The regulators flagged "longstanding deficiencies" in Wise's systems for combating money laundering and terrorist financing, indicating that these issues must be resolved before the company can demonstrate effective compliance.
Additionally, the OCC noted the lack of experience of Wise's proposed U.S. management team, stating they "failed to demonstrate sufficient experience with the fiduciary activities of national banks." Wise has no historical experience with fiduciary activities.
A U.S. banking license would allow Wise to operate under a single federal regulator, rather than relying on numerous state licenses, which would facilitate expansion of its services in the American market. This rejection represents a significant setback for the company in what it identifies as its largest growth market.
Wise confirmed that the decision would not impact its existing U.S. business operations and that it intends to submit a new application. The company stated it has made substantial investments in enhancing its global and U.S. compliance systems, customer verification, and financial crime controls since its initial application was filed over a year ago.
The news led to a drop in Wise's shares, which fell 6.34 percent, or 57.40 pence, to 848.00 pence on Friday. The company's stock has declined nearly 20 percent over the past year.
This regulatory decision follows a period of scrutiny for Wise. Last month, the company disclosed it was responding to questions from Belgian prosecutors investigating money laundering allegations. Those investigations reportedly began in 2025, stemming from concerns that Wise accounts had been involved in hundreds of requests for cross-border assistance in criminal proceedings across more than 30 European countries. Shares had previously fallen 20 percent in a single day after this information became public.