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Saturday, April 13, 2024

Revolut Faces Regulatory Scrutiny by the FCA


The Monetary 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Revolut for allegations that it permitted funds to be withdrawn from accounts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 Nationwide Crime Company (NCA). This
transfer is a part of the FCA’s ongoing efforts to make sure the integrity of
monetary establishments and safeguard towards cash laundering actions.

Based on a report by the Monetary Occasions, between July
and August, an estimated £1.7 million was launched from accounts that had been
flagged by the NCA. In response, Revolut knowledgeable the FCA in regards to the concern,
although it claims that solely £500,000 was launched from the accounts in query.
Finance Magnates reached out to Revolut for a remark, however as of the time of
publication, the corporate had not offered a response.

This investigation provides to Revolut’s regulatory challenges
as the corporate anticipates a banking license within the UK that it utilized
for in January 2021. The extended course of has raised questions in regards to the
issues of the FCA over auditing, compliance , and company tradition inside
Revolut.

Headquartered in London, Revolut operates as a cost
establishment within the UK. In most of Europe, it offers companies below a banking
license obtained in Lithuania. Revolut’s Australian arm is contemplating acquiring
an area banking license
however has not but initiated the formal utility
course of.

Revolut entered the US market in 2020, providing companies
comparable to cash transfers and debit playing cards. Over time, it has expanded its choices
to incorporate a robo-advisor for automated funding portfolios. Nevertheless, it
lately determined to discontinue its cryptocurrency companies within the US because of
regulatory challenges.

Revolut’s US Banking License Software

Revolut’s quest for a US banking license continues to face
delays. Two years after the UK-based fintech agency disclosed its plans to submit
a draft utility for a US banking constitution, the corporate has not
but filed the entire utility
, as reported by Tech.eu.

Neither the Federal Deposit Insurance coverage Company (FDIC) nor
California’s Division of Monetary Safety and Innovation (DFPI) has
confirmed receiving an utility from Revolut. The Workplace of the Comptroller
of the Forex, one other US regulatory authority, additionally reveals no pending
utility from the fintech agency.

In response to inquiries in regards to the standing of its utility, a spokesperson from Revolut advised Finance
Magnates
final month: “We do not touch upon our license
purposes.” Beforehand, Revolut had said that it submitted a draft
utility to each the FDIC and DFPI. In the meantime, Apron, a startup based by former Revolut’s Product Lead, Bogdan Uzbekov, raised $15 million final month.

The Monetary 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 Nationwide Crime Company (NCA). This
transfer is a part of the FCA’s ongoing efforts to make sure the integrity of
monetary establishments and safeguard towards cash laundering actions.

Based on a report by the Monetary Occasions, between July
and August, an estimated £1.7 million was launched from accounts that had been
flagged by the NCA. In response, Revolut knowledgeable the FCA in regards to the concern,
although it claims that solely £500,000 was launched from the accounts in query.
Finance Magnates reached out to Revolut for a remark, however as of the time of
publication, the corporate had not offered a response.

This investigation provides to Revolut’s regulatory challenges
as the corporate anticipates a banking license within the UK that it utilized
for in January 2021. The extended course of has raised questions in regards to the
issues of the FCA over auditing, compliance , and company tradition inside
Revolut.

Headquartered in London, Revolut operates as a cost
establishment within the UK. In most of Europe, it offers companies below a banking
license obtained in Lithuania. Revolut’s Australian arm is contemplating acquiring
an area banking license
however has not but initiated the formal utility
course of.

Revolut entered the US market in 2020, providing companies
comparable to cash transfers and debit playing cards. Over time, it has expanded its choices
to incorporate a robo-advisor for automated funding portfolios. Nevertheless, it
lately determined to discontinue its cryptocurrency companies within the US because of
regulatory challenges.

Revolut’s US Banking License Software

Revolut’s quest for a US banking license continues to face
delays. Two years after the UK-based fintech agency disclosed its plans to submit
a draft utility for a US banking constitution, the corporate has not
but filed the entire utility
, as reported by Tech.eu.

Neither the Federal Deposit Insurance coverage Company (FDIC) nor
California’s Division of Monetary Safety and Innovation (DFPI) has
confirmed receiving an utility from Revolut. The Workplace of the Comptroller
of the Forex, one other US regulatory authority, additionally reveals no pending
utility from the fintech agency.

In response to inquiries in regards to the standing of its utility, a spokesperson from Revolut advised Finance
Magnates
final month: “We do not touch upon our license
purposes.” Beforehand, Revolut had said that it submitted a draft
utility to each the FDIC and DFPI. In the meantime, Apron, a startup based by former Revolut’s Product Lead, Bogdan Uzbekov, raised $15 million final month.

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