Shares fall 11% after regulator cites compliance deficiencies
The OCC said in its rejection letter that the application presented significant supervisory and compliance concerns. The regulator cited long-standing deficiencies in anti-money laundering and countering the financing of terrorism at Wise’s U.S. operations.
Wise said it has been addressing historical issues with its original application mentioned in the OCC letter. The company said it strengthened its local U.S. program and enhanced investigation and reporting processes, among other changes made since the original application was filed. Wise said it invested significantly in enhancing its processes and controls in the U.S. and globally since preparing the application, including those to prevent financial crime alongside other forms of risk.
The denial comes months after Wise moved its primary stock market listing to New York while retaining a secondary listing on the London Stock Exchange. When announcing its intention to pursue a U.S. listing, the company said it saw the country as the biggest market opportunity in the world for its products.
Wise said it plans to submit a new application for a national trust bank charter under the framework of the Genius Act, President Trump’s stablecoin law. Trust banks typically do not take deposits or make loans.
The company said its operations remain unaffected by the regulator’s decision and that it continues to operate normally under existing money transmitter licenses across 48 U.S. states and four territories.