The British digital bank Revolut has violated the basic rules for conducting banking activities, resulting in thousands of potentially suspicious transactions passing through its platform. About this writes The Telegraph, citing the publication of the document.
According to the submitted documents, last year Revolut for 3 months disconnected an automated system aimed at preventing questionable remittances. As a result, thousands of illegal transactions could be passed through a digital banking system of a startup in the period from July to September 2018.
Revolut initiated an internal investigation in the second half of 2018, after receiving a notification of the problem from an informant. “As a result of the investigation, it was found that the decision to deactivate the transaction delay mechanism was wrong and led to the failure of the respective systems,” wrote Revolut general counsel Tom Hambrett in a letter to the UK Financial Supervision Authority (FCA).
The system automatically checks customer data against the official list of “politically exposed persons” and those with increased risks of illegal transactions.
Revolut turned to FCA in September to notify the regulator of a three-month “glitch”. In the appeal, the startup explained that it had shut down the system after it had allowed 8,000 “false positive” positives, taking legitimate transactions as suspicious and blocking them. As a result, the company switched to a system that could flag suspicious transactions, but did not reject them automatically. The operation of the full-fledged system was resumed on September 16.
Revolut, in a letter to the regulator, also stated that he did not believe that any violations of the law had been committed during the transition to an alternative system. “As far as we know, there were no violations of the law in the context of sanctions measures,” he wrote.
Revolut cryptocurrency users are known as a service that allows you to buy and sell Bitcoins, Litecoin, Ethereum, Bitcoin Cash and XRP for Fiat in the interface of your application, as well as receive cashback, including in digital currencies, when you pay for purchases using the Revolut Metal card. In December 2018, Revolut obtained a banking license from the European Central Bank.
