Wise Group Shares Drop After U.S. Regulator Denies License on Shortcomings

By Nina Kienle

London-listed shares in fintech company Wise Group fell after U.S. regulators denied its application for a national trust bank license, citing deficiencies in its program to combat money laundering and terrorism financing.

In European morning trading Friday, London-listed shares fell as much as 11% before recovering somewhat.

Wise, which earlier this year moved its primary listing to Nasdaq, said it invested significantly in enhancing its processes and controls in the U.S. and globally since it prepared the original application, including those to prevent financial crime alongside other forms of risk.

The company plans to submit a new application for a national trust bank charter under the framework of the Genius Act, it said, referring to President Trump's landmark stablecoin law. Trust banks typically don't take deposits or make loans.

The Office of the Comptroller of the Currency said in its rejection letter that Wise's application presented significant supervisory and compliance concerns. It cited long-standing deficiencies in anti-money laundering and countering the financing of terrorism at Wise U.S.

The company said in response that it has been addressing historical issues with its original application mentioned in the OCC letter. Wise said it strengthened its local U.S. program and enhanced investigation and reporting processes among other changes made since its original application was filed.

While the group prepares to submit a new application, its operations remain unaffected by the regulator's decision, it said. Wise said that it continues to operate normally under existing money transmitter licenses across 48 U.S. states and four territories.

The OCC decision comes months after Wise moved its primary stock market listing to New York, while retaining a secondary listing on the London Stock Exchange. When it announced its intention to pursue a U.S. listing, the company said it saw in the country the biggest market opportunity in the world for its products.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

July 24, 2026 05:50 ET (09:50 GMT)