The Financial Conduct Authority (FCA) is investigating
Revolut for allegations that it permitted funds to be withdrawn from accounts
that had been flagged as suspicious by the National Crime Agency (NCA). This
move is part of the FCA’s ongoing efforts to ensure the integrity of
financial institutions and safeguard against money laundering activities.
According to a report by the Financial Times, between July
and August, an estimated £1.7 million was released from accounts that had been
flagged by the NCA. In response, Revolut informed the FCA about the issue,
though it claims that only £500,000 was released from the accounts in question.
Finance Magnates reached out to Revolut for a comment, but as of the time of
publication, the company had not provided a response.
This investigation adds to Revolut’s regulatory challenges
as the company continues to anticipate a banking license in the UK that it applied
for in January 2021. The prolonged process has raised questions about the
concerns of the FCA over auditing, compliance , and corporate culture within
Revolut.
Headquartered in London, Revolut operates as a payment
institution in the UK. In most of Europe, it provides services under a banking
license obtained in Lithuania. Revolut’s Australian arm is considering obtaining
a local banking license but has not yet initiated the formal application
process.
Revolut entered the US market in 2020, offering services
such as money transfers and debit cards. Over time, it expanded its offerings
to include a robo-advisor for automated investment portfolios. However, it
recently decided to discontinue its cryptocurrency services in the US due to
regulatory challenges in the country.
Revolut’s US Banking License Application
Revolut’s quest for a US banking license continues to face
delays. Two years after the UK-based fintech firm disclosed its plans to submit
a draft application for a US banking charter, the company has not
yet filed the complete application, as reported by Tech.eu.
Neither the Federal Deposit Insurance Corporation (FDIC) nor
California’s Department of Financial Protection and Innovation (DFPI) has
confirmed receiving an application from Revolut. The Office of the Comptroller
of the Currency (OCC), another US regulatory authority, also shows no pending
application from the fintech firm.
In response to inquiries about the status of their
application, a spokesperson from Revolut told Finance
Magnates last month: “We don’t comment on our license
applications.” Previously, Revolut had stated that it submitted a draft
application to both the FDIC and DFPI. Meanwhile, Apron, a startup founded by former Revolut’s Product Lead, Bogdan Uzbekov, raised $15 million last month.
The Financial Conduct Authority (FCA) is investigating
Revolut for allegations that it permitted funds to be withdrawn from accounts
that had been flagged as suspicious by the National Crime Agency (NCA). This
move is part of the FCA’s ongoing efforts to ensure the integrity of
financial institutions and safeguard against money laundering activities.
According to a report by the Financial Times, between July
and August, an estimated £1.7 million was released from accounts that had been
flagged by the NCA. In response, Revolut informed the FCA about the issue,
though it claims that only £500,000 was released from the accounts in question.
Finance Magnates reached out to Revolut for a comment, but as of the time of
publication, the company had not provided a response.
This investigation adds to Revolut’s regulatory challenges
as the company continues to anticipate a banking license in the UK that it applied
for in January 2021. The prolonged process has raised questions about the
concerns of the FCA over auditing, compliance , and corporate culture within
Revolut.
Headquartered in London, Revolut operates as a payment
institution in the UK. In most of Europe, it provides services under a banking
license obtained in Lithuania. Revolut’s Australian arm is considering obtaining
a local banking license but has not yet initiated the formal application
process.
Revolut entered the US market in 2020, offering services
such as money transfers and debit cards. Over time, it expanded its offerings
to include a robo-advisor for automated investment portfolios. However, it
recently decided to discontinue its cryptocurrency services in the US due to
regulatory challenges in the country.
Revolut’s US Banking License Application
Revolut’s quest for a US banking license continues to face
delays. Two years after the UK-based fintech firm disclosed its plans to submit
a draft application for a US banking charter, the company has not
yet filed the complete application, as reported by Tech.eu.
Neither the Federal Deposit Insurance Corporation (FDIC) nor
California’s Department of Financial Protection and Innovation (DFPI) has
confirmed receiving an application from Revolut. The Office of the Comptroller
of the Currency (OCC), another US regulatory authority, also shows no pending
application from the fintech firm.
In response to inquiries about the status of their
application, a spokesperson from Revolut told Finance
Magnates last month: “We don’t comment on our license
applications.” Previously, Revolut had stated that it submitted a draft
application to both the FDIC and DFPI. Meanwhile, Apron, a startup founded by former Revolut’s Product Lead, Bogdan Uzbekov, raised $15 million last month.
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- Source: https://www.financemagnates.com//fintech/revolut-under-scrutiny-fca-probes-suspicious-account-transactions/
