Kristo Kaarmann is the billionaire cofounder and CEO of Wise.Sportsfile via Getty ImagesWise’s ambitions to deepen its presence in the U.S. suffered a setback after regulators rejected the fintech's application to become a national trust bank, citing concerns over its anti-money laundering controls and management’s lack of familiarity with banking laws.The Office of the Comptroller of the Currency (OCC) said Wise's application presented "significant supervisory and compliance concerns," including longstanding deficiencies in its anti-money laundering and counter-terrorist financing controls in the U.S. The regulator also concluded that the proposed management team and board lacked sufficient expertise in banking regulation, fiduciary activities and anti-money laundering requirements.The decision represents a blow to Wise's U.S. expansion strategy. A national trust bank charter would have allowed the company to gain direct access to the U.S. federal payments system rather than relying on partner banks, potentially reducing costs and strengthening its position in what it previously described as its most promising market.In London, Wise’s shares fell as much as 11% in early trading Friday before recovering some of the losses later in the day. Earlier this year, the fintech moved its primary listing to the Nasdaq to gain access to the world’s deepest and most liquid capital market.“With this move we look to continue expanding our local presence and reaching thousands of U.S. banks, online platforms and the many people and businesses who transact across borders,” David Wells, chairman of Wise, said when announcing the change.MORE FOR YOUWise said it plans to submit a new application for a national trust bank charter under the framework of the Genius Act—President Donald Trump’s recently enacted law that governs stablecoins. The company believes the new framework could provide a clearer path to obtaining a trust charter, which would provide direct access to the federal payments network.Wise also pointed out that the OCC’s letter refers to “historical issues” with the original application that was submitted more than a year ago. “We have invested significantly in enhancing our processes and controls globally and in the U.S. since the original application for the trust charter was prepared, including those to prevent financial crime alongside other forms of risk,” the fintech said. “Preventing bad actors from using financial institutions like Wise is of the utmost importance to us.”Wise added that its U.S. business will continue operating as normal under existing money transmitter licenses that are valid across 48 states and four territories.The OCC’s decision follows other regulatory scrutiny of the company. Last year, Wise agreed to pay a $4.2 million penalty to settle allegations by regulators in six U.S. states over shortcomings in its anti-money laundering program.Last month, the fintech said it was responding to queries from the Belgian prosecutor after The Bureau of Investigative Journalism (TBIJ) reported the fintech's platform had allegedly been involved in about €500 million of suspicious transactions across 30 European countries. At the time, Wise said requests for information from law enforcement agencies are a routine part of operating a global financial institution and do not, by themselves, indicate non-compliance with anti-money laundering regulations or any wrongdoing.Wise says it serves more than 19 million active customers worldwide and processes around 4.7 million transactions each day. It generated about $2.5 billion in revenue for the fiscal year 2026.Founded in 2011 by Kristo Kaarmann and Taavet Hinrikus, Wise set out to make international money transfers faster, cheaper and more transparent than traditional banks. The company went public through a direct listing on the London Stock Exchange in 2021, a debut that made its cofounders Estonia’s first billionaires. Although Hinrikus stepped down later that year, Kaarmann remains chief executive and retains control through Wise's dual-class share structure.