Revolut under Scrutiny: FCA Probes Suspicious Account Transactions

by Jared Kirui
  • The regulator is investigating whether Revolut allowed transactions flagged by the NCA.
  • Up to £1.7 million was allegedly released from these accounts in July and August.
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The Financial Conduct Authority (FCA) is investigating Revolut for allegations that it permitted funds to be withdrawn from accounts that had been flagged as suspicious by the National Crime Agency (NCA).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.

Revolut Faces Regulatory Hurdles

This investigation adds to Revolut's regulatory challenges as the company anticipates 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 has 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.

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, another US regulatory authority, also shows no pending application from the fintech firm.

In response to inquiries about the status of its 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.

Revolut Faces Regulatory Hurdles

This investigation adds to Revolut's regulatory challenges as the company anticipates 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 has 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.

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, another US regulatory authority, also shows no pending application from the fintech firm.

In response to inquiries about the status of its 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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