Revolut whistleblower had concerns over CEO conduct and compliance

#1

BBC front page this morning…

Leaked sanctions letter

In February, the Telegraph newspaper revealed that in the summer of 2018, Revolut disabled a system designed to automatically halt transactions to individuals who matched against sanctions lists.

Such lists contain the names of individuals whose assets have been frozen and include those connected with chemical weapons violations, as well as members of the Islamic State.

Revolut said that it did not stop checking transactions for compliance last year.

The company’s lawyers drafted a letter to the FCA about the change, but in the end the letter was never sent.

This draft letter was later leaked to journalists.

In the letter, which the BBC has seen, Revolut lawyers stated that the company’s head of compliance technology changed systems so that transactions that potentially matched against sanctions lists were not halted.

Instead the system flagged the transaction for inspection but still allowed it to go through.

Revolut need to be open with us, it’s users, about this potentially damaging news story. It may just be the BBC and press not liking the idea of alternative banking but it puts a doubt in my mind about continuing with Revolut

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#2

I wouldn’t describe Revolut as a “currency transfer firm”. It provides multi-currency bank accounts, which is different from a transfer service.

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#3

What’s the bad offering currency transfers? I dont mean using it in a bad way (money laundering etc) Revolut wants to introduce stock exchange too!

Why so many whispers around these awesome services?

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#4

but it puts a doubt in my mind about continuing with Revolut

That’s the entire point of this type of MSM propaganda story, to put people subtly off a product without actually saying anything libellous. Note the sneaky way they say that “Revolut does not have a UK banking license”, I mean come on.

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#5

The most important is the statement from the Revolut: ""During that trial, we experienced an issue whereby a greater number of transactions were being flagged for further checks than necessary, so we decided to pause the trial until this could be rectified. Throughout this process our original compliance system was running in parallel. "

FCA certainly has the right and can get data. Which transfers have taken place during this period, and to whom, and whether they comply with the regulations.

Otherwise they are journalistic rumors for the purpose of bombastic headlines.

Some form of engagement of the author of the article against Revolut is already stated in the text: “The financial technology company bills itself and” digital banking alternative “, although it does not have a UK banking license.”

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#6

The replies all seem to fit into the “in denial” camp… strange that nobody from Revolut has bothered responding.

It may just be the BBC and press not liking the idea of alternative banking

Personally I like the idea of Revolut and apart from the extra fees for Thai baht I’m happy to stay with them, but questions remain and Revolut has a tendency to make the wrong sort of headlines. If it was purely BBC, press and FCA disliking alternative banking then why is it always Revolut and not Monzo, N26 or Starling or any of the other challenger banks. The terms Smoke and Fire come to mind.

I hope there is nothing in this story but I would like Revolut to respond

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#7

2016
I think it’s over now

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#8

Revolut are considerably different from any of the other firms.

Monzo has a cult following and anyone who has anything against them are going to face the wrath of it. That and FSCS protection.

Starling doesn’t have as large a user base to make it particularly worth attacking them, it’s likely to draw more users to them in fact (since they have FSCS guarantee)

N26 have just launched in this country and also have the equivalent to FSCS covering your money. Any attack on banks with this doesn’t matter, as there’s inherit trust.

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#9

You’re not aware of the amount of bad press N26 got since it’s start in its home country Germany. Problems and allegations are very similar. Money laundering, fraud, problems with scaling customer support and ID verification, frozen customer accounts … it’s not just Revolut.

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#10

I believe that the big banks, with the increase in the quantity and quality of the fintech services, will do their best to discredit them.

They will use different methods and tools. It should be noted that so far it has always been conjecture, “leaked” information, etc.

At the same time, these large banks themselves often have a problem that is subject to official investigation. For example, Deutsche Bank (https://www.thestreet.com/world/deutsche-bank-confirms-internal-probe-over-money-laundering-scandal-14836228).

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#11

A lot of good responses so thanks for those. Obviously I still have concerns but we’ll just have to see what happens and whether Revolut have anything to add.
Thanks chaps

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#12

Hi there,

We have replied, you can find our official statement in the article.

“Any suggestion that our CEO… ignored the advice of our compliance team in 2015 or thereafter is categorically untrue.

“This is the first time that Revolut has been made aware of any such complaint, which appears to have been made by a former employee who left the company several years ago.

“Our compliance procedures are and always have been overseen by an executive risk committee in consultation with our senior compliance staff members.”

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#13

Thanks Andreas, much appreciated

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#14

Latest in German newspaper Handelsblatt: https://www.handelsblatt.com/finanzen/banken-versicherungen/smartphone-bank-n26-geraet-ins-visier-der-finanzaufsicht/24194558.html

When BaFin is involved, you’ll not be sleeping too well.

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#15

I am not surprised. And honestly, it’s okay for me. I know, I am tolerant, but I always approached companies like N26 and Revolut with the mindest of an early adopter. Hope for the best. But be prepared for the worst. :wink:

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#16

Many topics and news articles are evolving regarding Revolut… Many say that they are reliable and some don’t… Its a 50 50 situation tbh

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#17

I am with you. :grin:
Let’s see what’s behind those issues maybe in 5-6 months.

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