The U.S. denied British fintech company Wise a banking license

A U.S. regulator has rejected an application by the British fintech company Wise for a banking license in the United States. The rejection was attributed to deficiencies in the company’s anti-money laundering system and a low level of compliance, according to a statement. Wise’s shares fell nearly 7% in London trading and at one point dropped more than 10%.

The Office of the Comptroller of the Currency (OCC) reported that Wise’s U.S. division had not demonstrated a comprehensive understanding of the country’s anti-money laundering regulations and banking laws as a whole. Wise currently operates in the U.S. as an international money transfer service—based on licenses obtained separately in each state.

The regulator also noted that Wise has no experience in managing third-party assets on a fiduciary basis, and that its management lacks the qualifications to provide such services.

"The OCC cannot conclude that the proposed national trust bank will have an effective anti-money laundering and counter-terrorism financing compliance program for conducting business in the United States until Wise addresses the existing deficiencies," the document states.

Wise stated that more than a year has passed since the application was filed, and the company’s business—as well as its compliance—has become much more mature. The fintech company assures that it has already made the necessary changes in response to the OCC’s comments: “In the letter published today, the regulator specifically refers to shortcomings in the initial version of the application, which Wise addressed during the review process.”

The company explained that the application was no longer valid because regulations governing the payments industry in the U.S. have changed significantly since then, including following the passage of the GENIUS Act, which regulates digital assets. Wise now plans to submit a new application—this time in accordance with the GENIUS Act.

The rejection marked yet another regulatory setback for Wise, the Financial Times notes. On June 1, the company’s stock fell nearly 20% due to an investigation by Belgian authorities into possible violations related to money laundering and the likely use of the company’s accounts by international criminal groups.

Last year, Wise’s U.S. subsidiary was fined $4.2 million after U.S. regulators determined that it had violated the Bank Secrecy Act and anti-money laundering laws as part of its counterterrorism financing program.

Under the Donald Trump administration, the OCC is taking a more lenient approach to approving banking licenses, helping fintech companies with their applications, the FT notes. The British fintech startup Revolut and the Swedish service Klarna are currently awaiting approval.

This article was AI-translated and verified by a human editor