The UK's fintech darling Wise has been dealt a significant blow after its bid for a full US bank licence was rejected by regulators due to 'deficiencies' in its anti-money laundering (AML) protocols. The decision, made public on 24 July 2026, marks a substantial setback for the London-headquartered company, which had ambitions to expand its operations in one of the world's most lucrative financial markets.
The rejection will likely impact Wise's ability to offer a broader range of financial products and services to American customers. Currently, the company operates under a US money transmitter licence, allowing it to facilitate cross-border payments but limiting its scope for innovation. Securing a full banking licence would have enabled Wise to compete more directly with established players in the US market.
According to sources close to the regulatory body, the identified compliance concerns centred on gaps in Wise's operational framework for identifying and preventing illicit financial activities. The company was also deemed to have insufficient knowledge of the intricate regulatory landscape governing banking operations in the US.
The rejection could force Wise to reconsider its approach to the US market, potentially leading to delays in product launches or a reliance on partnerships with existing licensed entities. The company will now face the challenge of addressing these compliance shortcomings to satisfy regulatory requirements, a process that can be both time-consuming and costly, estimated to cost up to £10 million.