Wise shares plunged 9% Friday after the US Office of the Comptroller of the Currency rejected the fintech’s application for a national trust bank charter, marking the first high-profile denial under the current administration. The OCC cited significant supervisory and compliance concerns, stating Wise’s proposed management demonstrated a persistent inability to manage money-laundering and terrorist-financing risks. The application was submitted over a year ago.
Wise contested the decision, arguing the regulator assessed an outdated snapshot of operations that have since evolved substantially. The company plans to submit a fresh application under the recently enacted GENIUS Act, which establishes a new crypto regulatory framework, to access the US federal payments network directly.
The rejection compounds mounting regulatory pressure on Wise. Belgian authorities recently launched a money laundering probe that triggered a 20% share drop, while US regulators fined its American subsidiary $4 million last year for violating anti-money laundering rules.
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FXnCO Insight
** Cross-border payment providers face intensified scrutiny despite lighter regulatory rhetoric—compliance infrastructure remains the critical barrier to US market expansion.
Source: Finance Magnates