Regulator raises concerns over fintech’s anti-money laundering checks and understanding of banking law.

The Office of the Comptroller of the Currency raised the lack of experience of Wise’s proposed US management team as a factor in its rejection.

Wise’s application for a US banking licence has been rejected by regulators because of “deficiencies” in the fintech’s anti-money laundering checks, as well as a lack of understanding of the banking law.

The Office of the Comptroller of the Currency said in a letter that Wise’s US business had not demonstrated enough understanding of money laundering rules or US banking law.

Rejecting Wise’s application, the regulator noted “longstanding . . . deficiencies” in the British fintech’s anti-money laundering and counterterrorist financing systems.

The OCC said Wise would need to address these shortcomings before it could be deemed to have an effective compliance programme in its US business.

The watchdog also raised the lack of experience of Wise’s proposed US management team as a factor in its rejection.

“Wise US has no historical experience with fiduciary activities, and proposed management and directors failed to demonstrate sufficient experience with the fiduciary activities of national banks,” it said.

Wise’s failure to nominate directors and managers with sufficient expertise in anti-money laundering rules “did not reflect favourably on the application”, the OCC said.

https://www.ft.com/content/fe213675-b988-4121-9723-96d433d524d8

https://finance.yahoo.com/markets/stocks/articles/wise-tumbles-us-regulator-rejects-081400186.html

Concerning.