The U.S. Office of the Comptroller of the Currency (OCC) denied a U.S. banking charter application from UK payments company Wise this week, citing anti-money laundering and counter-terrorist financing (AML/CFT) risks. The move stands in contrast to the regulator’s approvals of similar charters for several digital asset firms over the past year.
OCC Cites AML/CFT Risks
The OCC’s decision centers on the adequacy of AML/CFT controls, a longstanding focal point for U.S. bank regulators evaluating new charter applicants. The agency has emphasized robust compliance frameworks, including customer due diligence, transaction monitoring, and sanctions screening, as prerequisites for granting national banking privileges.
Regulatory Context
The OCC oversees national banks and federal savings associations, and it has faced heightened scrutiny over how it evaluates fintech and crypto-related applicants. While some digital asset companies have received charters or conditional approvals in recent periods, the regulator has maintained that approvals depend on firm-specific risk management and governance standards, particularly around illicit finance safeguards.
Why It Matters
- Denial underscores the OCC’s strict stance on AML/CFT readiness for nontraditional finance firms seeking U.S. charters.
- The contrast with recent digital asset approvals highlights perceived inconsistencies in the regulatory landscape, a key concern for fintech and crypto market participants planning U.S. expansion.
What’s Next
It was not immediately clear whether Wise will adjust its compliance program and refile its application. The OCC’s decision suggests any renewed bid would likely require enhanced AML/CFT controls and governance to meet supervisory expectations.