OCC rejects Wise’s trust charter application over ‘deficiencies’

The Office of the Comptroller of the Currency (OCC) has rejected Wise’s application for a U.S. national trust charter. The regulator cited concerns regarding the fintech's internal controls and compliance programs. Specifically, the OCC flagged deficiencies in how Wise manages money laundering risks and its general corporate governance. While Wise is primarily known for international money transfers, this move was a key part of their strategy to offer more robust banking services in the United States. For retail operators and merchants, this rejection signals a continued strict stance from U.S. regulators regarding fintech expansion. If your business relies on Wise or similar non-bank fintechs for cross-border payments or settlement, this news doesn't stop current operations, but it does slow down the company's ability to offer specialized U.S. banking products. Wise has already stated they intend to re-apply under a different regulatory framework (the Genius Act), but this process will take time. Expect the regulatory environment for alternative financial service providers to remain high-pressure throughout the year. For now, fintechs will likely continue to rely on traditional bank partnerships rather than operating under their own federal charters.

Source: Banking Dive

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