Wise shares fell as much as 10% after the U.S. Office of the Comptroller of the Currency (OCC) denied its national trust bank charter application. Regulators cited historical compliance issues, including deficiencies in anti-money laundering controls. The rejection delays the London-based fintech’s plans to lower costs through direct access to the Federal Reserve’s payment system.
Wise stated a Federal Reserve policy change regarding uninsured trust banks rendered the year-old application non-viable. The company has since invested in strengthening its compliance programs to address regulatory feedback. Current U.S. operations under state-level money transmitter licenses are not affected by the decision.
The company plans to submit a new application under the recently enacted GENIUS Act framework.