Wise has been refused a US banking licence after regulators raised concerns about issues linked to the company’s original application, including controls designed to prevent financial crime.
The London-headquartered payments firm said the US Office of the Comptroller of the Currency rejected its application for a national trust bank charter, which Wise submitted in June last year.
The licence would have given Wise direct access to payment systems operated by the Federal Reserve and allowed it to provide additional services to US customers, including fiduciary, custodial and safekeeping services.
Wise already operates in the United States under existing money transfer licences. The company said the OCC’s decision would not affect its normal business operations in the country.
The firm said the regulatory environment for payments and financial services had changed significantly since its original application, including through new rules introduced during President Donald Trump’s administration governing cryptocurrencies.
Wise said it had since invested heavily in improving its global and US compliance systems. The measures include stronger investigation and reporting procedures, improved customer data collection and additional resources for local compliance operations.
“Preventing bad actors from using financial institutions like Wise is of the utmost importance to us,” the company said.
Wise said it plans to submit a new application under the current regulatory framework. The company said a future application would reflect both its expanding business and changes in US financial regulation.
The decision comes only months after Wise moved its primary stock market listing from London to Nasdaq in May. The company said the move would give it access to a larger capital market and help attract new investors.
Wise was founded in 2011 by Estonian entrepreneurs Kristo Käärmann and Taavet Hinrikus under the name TransferWise. The company began as a provider of international money transfers before expanding into investment products and debit cards.
The business now has around 19 million customers worldwide and employs more than 8,000 people. Käärmann remains the company’s chief executive.
The OCC decision also follows reports that Belgian authorities were investigating Wise over concerns about possible money laundering through accounts linked to the company.
The Bureau of Investigative Journalism reported that Brussels prosecutors were examining transactions worth around €500 million. The investigation reportedly involved potential underlying offences including fraud, corruption and drug trafficking.
Wise previously said it was cooperating with the Brussels prosecutor’s office and would continue engaging with investigators if specific findings were presented.
Wise shares fell sharply after the US banking licence decision was reported, dropping 112 pence, or 12 per cent, to 822 pence.
The rejection contrasts with developments at some other British fintech firms. Revolut, another major digital financial services company, launched its UK bank in March after receiving approval from the Prudential Regulation Authority.
