- Revolut’s compliance checks allow new customers to open accounts on the platform within minutes
- Insiders reveal that automated checks can compromise the brand
- Company’s expansion could be using resources that may have been budgeted for its defences against money laundering activities and other financial crimes
Revolut found a possible money laundering transaction in its payments system a few months ago and the development has resulted in speculation as to what compromised the fintech firm’s defences.
As news of Revolut contacting the Financial Conduct Authority and the National Crime Agency surfaced, finance experts from the Business Insider noted that Revolut’s move suggests that “the severity of the issue is high”.
The UK-based company’s compliance checks on its international money transfer platform may not be enough, according to unnamed individuals allegedly privy to the issue. New customers are able to “open accounts within minutes”, the Financial Times reported – and what is usually deemed as a good thing may be making the system vulnerable to financial crime.
Despite a statement from Revolut founder Nikolay Storonsky that the brand has passed its anti-money laundering controls, questions on whether the company’s compliance checks are sufficient still plague the brand.
According to Lea Nonninger of Business Insider, there is a possibility that Revolut is using funds meant for the digital defence of its expansion plans. The company recently told reporters that it is planning to take advantage of the burgeoning cross-border payments market in the United States, Japan, Hong Kong, Canada, New Zealand and Australia.
The fact that Revolut notified the NCA and the FCA suggests that the potential money laundering activity it found on its system is being investigated. Finance experts noted that the brand is serious about solving the problem, but they add that this may just be the wakeup call that the UK neobank needs to ensure that its compliance efforts do not let financial criminals in.
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