Wise (NASDAQ: WSE) has been denied a U.S. national trust bank charter after the Office of the Comptroller of the Currency said it found anti-money-laundering deficiencies in the payments company's application. The OCC rejected the application on Thursday, July 23, and Wise shares fell 11% in less than 24 hours.

The decision is a setback for Wise's effort to expand its presence in the United States. The London-headquartered fintech debuted on Nasdaq in May after moving its primary listing to New York, and a national trust bank charter would have marked a significant step in its U.S. strategy. Such charters grant institutions federal-level authority to provide fiduciary and custody services and typically reduce reliance on state-by-state licenses and partner banks for payment settlement.

OCC issues a rare formal rejection

The OCC does not often issue outright denials for national trust bank charter applications. Reports have compared Wise's situation with that of UK digital bank Monzo, which withdrew its application after the regulator indicated it was unlikely to approve it.

Wise did not withdraw its application, leaving the OCC to issue a formal rejection.

Wise applied for the national trust charter more than a year ago. The company said the reasons cited by the OCC in its denial letter relate to issues tied to the original filing and do not take into account where the business stands today.

Google Finance data showed Wise shares trading at about 844 pence on the London Stock Exchange on Friday morning, down from a previous close of 905 pence. On Nasdaq, pre-market data showed the stock down 6.51% at $12.08.

Compliance concerns cited in the application

The regulator's concerns centered on compliance. Wise's application was affected by a public Multi-State Consent Order from July 2025, reached with several U.S. states over weaknesses in the company's anti-money-laundering program.

Those weaknesses included delays in filing suspicious activity reports, which banks are required to submit when they detect possible criminal movement of funds.

Citing the Financial Times, the regulator found that the UK fintech "has no historical experience with fiduciary activities" and that its proposed management did not demonstrate sufficient relevant experience.

Wise said it has since strengthened its controls. "In response to the Consent Order, we have strengthened our local U.S. program, enhanced our investigation and reporting processes, improved the integrity of the data we collect from our customers and increased resourcing for our local compliance program," the company said in a statement.

The company also said it works with the UK's Financial Conduct Authority and the National Bank of Belgium on those controls.

Wise says its original plan is no longer viable

Wise's initial application was built around obtaining a master account at the Federal Reserve, which would provide direct access to the U.S. payment system. The Federal Reserve proposed changing that access policy in May 2026 and has also paused account access for uninsured trust banks. Wise now describes that basis for its first application as "non-viable."

The company plans to refile under the GENIUS Act, a new U.S. law that gives stablecoins a clearer role alongside traditional payment rails. The legislation establishes a federal framework for stablecoin issuance and oversight, potentially offering Wise an alternative regulatory pathway. Wise said its infrastructure is positioned to connect those systems as digital assets become more widely used.

Wise also said the OCC decision does not affect current customers. The company continues to operate under money transmitter licenses across 48 U.S. states and four territories, as part of more than 80 licenses worldwide.

In fiscal 2026, Wise served around 19 million customers and moved more than $240 billion across borders, according to its SEC filing. The United States accounts for about 15% of its revenue. For the year ending in March, Wise reported nearly $500 million in earnings on $2.5 billion in revenue.

Digital-asset firms continue to seek OCC charters

The OCC has approved several digital-asset firms for similar charters over the past year. In December 2025, the regulator conditionally approved national trust charters for Ripple, BitGo, Paxos, Circle and Fidelity Digital Assets. In May 2026, it cleared Nomura's Laser Digital, marking the first such approval for a Japanese bank subsidiary.

At least 15 digital-asset firms have applied for OCC charters since the start of 2025.

Wise's rejection indicates that the agency can still deny applications when it has concerns about an applicant's compliance record, even as it allows newer entrants into the federal banking system. Rival Revolut filed a fresh U.S. charter application this year after abandoning a previous attempt, making Wise one of multiple European fintech companies testing the regulator's approach. The outcome underscores the weight the OCC places on AML controls and compliance history when evaluating charter applicants, a signal other cross-border payments firms weighing similar applications are likely to note.