RT @JamesLiamCook: Exclusive: Revolut launched an internal investigation last year after a whistleblower informed the company's board that a sanctions screening system meant to block suspicious transactions had been turned off for months https://t.co/mRiYsVzA4r
Something does not add up... Look at the dates. In July 17, 2018 article "flagged a spate of suspected money laundering a couple of months ago" and "Digital bank Revolut has reported suspected money laundering activities on its network to British law enforcement and regulatory agencies, a spokesman said on Tuesday, adding that the sums of money involved were not significant." And now we find out just on September 16 they re-activated screening system?
> One of Britain's most promising technology startups has been accused of violating basic banking rules by failing to block thousands of potentially suspicious transactions on its platform.
>Documents seen by The Telegraph show that for three months last year Revolut switched off an automated system designed to stop dubious money transfers.
>As a result, thousands of illegal transactions may have passed through the London-based startup's digital banking system between July and September of 2018.
>Revolut launched an internal investigation in late 2018 after a whistleblower contacted Revolut's board over serious issues with its sanctions screening system.
>In a letter to the FCA in September 2018, Revolut's head of legal Tom Hambrett wrote: "The investigation concluded that the original decision to turn off the transaction-halting mechanism was erroneous and implied a remediable systems and controls failing."
>Sanctions screening systems automatically check customer records against an official list to identify high-risk transactions and customers who are flagged as "politically exposed persons".
>Revolut, which has grown to over 3m customers around the world since its launch in 2015, contacted the Financial Conduct Authority (FCA) in September to inform the watchdog of a three-month "failing", The Telegraph can reveal.
>It told the FCA that it had disabled part of its sanctions screening system after it made 8,000 "false positive" flags, incorrectly identifying legitimate transactions as being suspicious and blocking the transfers. The company then moved to a compliance system that flagged transactions but did not automatically disable them, Revolut said.
>The problems at Revolut follow a string of regulatory issues at other so-called 'challenger banks'. Metro Bank was forced to announced plans to raise £350m from investors this week after revealing that it had underestimated the risk level of some of its commercial loans.
>The FCA was only informed of the problems at Revolut after an employee complained to the board about the switch and the fact that it did not automatically block suspicious transactions.
>The company re-activated its sanctions screening system on September 16, Revolut told the FCA.
>Revolut told the watchdog that it did not believe that it had broken the law during its switch to a different compliance system. "To the best of Revolut's knowledge there has been no breach of law with respect to sanctions requirements," the company wrote.
>The digital bank has since introduced a new system following the incident last year, it said in the letter.
>However, the issue raises questions over Revolut's ability to stop sanctioned individuals and companies from using its app.
>It follows a report by the bank to the FCA and National Crime Agency last year in which it warned both organisations of suspected money laundering in its app.
>The digital bank has seen a number of departures from its compliance team in the past two years, including two chief risk officers, the chief compliance officer, and two money laundering reporting officers.
>A spokesman for the FCA declined to comment on Wednesday.
>A Revolut spokesman said that "Revolut does not comment on its engagement with its regulators."