World Liberty Financial aims to become a national US bank

Key points:

• World Liberty Financial, with the support of the Trump family, has applied for a national banking license in the US.
• The company will undergo lengthy and rigorous regulatory review, including capital, governance, and financial compliance reviews.

World Liberty Financial (WLFI), a company backed by members of the Donald Trump family, has applied for a national banking license in the United States. The application has triggered a lengthy review process with the Office of the Comptroller of the Currency (OCC), which could take up to 18 months and impact both the financial market and the political sphere.

WLFI plans to operate as a digital bank and offer standard retail services: checking and savings accounts, consumer and commercial loans. The company states that it focuses on small businesses and individual clients and holds capital above minimum requirements. The regulator will evaluate the business model, management team, the strength of the financial structure, and the risk management system.

Reviews, Risks, and Political Factors

The licensing process will be particularly rigorous due to the ownership structure. The OCC will review all key shareholders and executives, including the financial history and business connections of the Trump family. Special attention will be paid to the separation of banking and politics, as well as compliance with anti-money laundering (AML) requirements, bank secrecy, and cybersecurity.

Since the 2008 financial crisis, new banking licenses have been issued infrequently in the US, but the rise of fintech companies is gradually changing regulators' approach. WLFI's application stands out for its combination of a digital model with the backing of an influential political family. Similar projects have often faced protracted reviews or denials in the past.

If approved, WLFI could become a significant player in the market and strengthen the financial position of the Trump family's business entities. Furthermore, experts are discussing the potential impact on political campaign finance, including the servicing of donor and committee accounts. Supporters believe that banking oversight will ensure transparency, while critics fear conflicts of interest, even with formal compliance.