The Office of the Comptroller of the Currency (OCC) denied Wise’s application to establish a national trust bank. This rejection marks a significant setback for the fintech firm’s U.S. expansion plans.
Regulators cited concerns over past compliance and anti-money-laundering controls. The OCC also highlighted shifting Federal Reserve policies regarding payment system access for uninsured trust banks.
London-listed shares of Wise fell by as much as 11% following the news.
Wise confirmed the decision does not affect its current U.S. operations, which continue under state-level licenses. The company has since enhanced its compliance programs and plans to submit a new application under a different regulatory framework.