Revolut Faces Penalties for Delayed Financial Reports
The $33 billion-valued British fintech startup, Revolut, has been waiting since 2021 for the United Kingdom to approve its application for a banking licence. Many factors, such as high employee turnover, difficulties in filing financial reports, and worries about the firm’s corporate culture and “toxic environment,” have contributed to the holdup. In 2016, the FCA (Financial Conduct Authority) looked into Revolut after a whistleblower said the company was lax with its money-laundering procedures. Even though the probe was wrapped up in 2017, a few officers at traditional banks still need to be reassured about the firm’s compliance culture.
According to an investigation, the UK authority is also aware of Revolut’s issues in Lithuania, which was issued a banking licence in 2018 and was subsequently penalised twice for neglecting to acquire appropriate information on users and postponed filing of verified financial accounts. In the UK, the startup risks a penalty for failing to file its group accounts for the fiscal year ending in 2021 by the deadline set by the Financial Reporting Council, although Revolut claims that the delay is the fault of its auditors at BDO.
Although the operations of Revolut have been a source of concern for the Lithuanian parliament, they have found insufficient information to conclude that the company poses a danger to the country’s safety. The fact that Nikolay Storonsky, the Revolut’s founder, is a Russian national who immigrated to the United Kingdom in 2004 and surrendered his Russian identity in 2022 also raises concerns. Intelligence officials reportedly discouraged the use of Revolut by embassy employees in Five Eyes alliance’s sensitive capacities.