Wise Denied U.S. Banking License, Stock Plummets Amid Investigations

Wise's ambition to operate as a fully chartered bank in the United States has been thwarted, leading to a significant drop in its stock value. The U.S. Office of the Comptroller of the Currency (OCC) denied the fintech company's application for a national banking license, a move that sent Wise's shares tumbling nearly 5% on Friday.

The OCC's rejection was reportedly due to past concerns regarding Wise's efforts to combat financial crimes. This decision represents a considerable setback for Wise, particularly as the company recently transferred its main stock market listing from London to New York's Nasdaq exchange in May. The aim was to tap into a larger market and attract more investors, making the U.S. regulatory denial particularly impactful.

Despite this refusal, Wise stated it plans to submit a new application. The company emphasized that the OCC's decision does not affect its day-to-day operations in the U.S., where it currently functions under existing money transfer licenses. Wise aims to present a compliant application that accommodates its expanding business and the evolving regulatory environment.

This development follows reports that Belgian prosecutors are investigating Wise for suspected money laundering activities. Belgian authorities initiated an investigation last year after Wise's accounts were flagged in numerous international police inquiries across Europe. The alleged transaction volume involved is substantial, reportedly around 500 million euros. The OCC's denial, coupled with the Belgian investigation, casts a shadow over Wise's regulatory standing.