UK Regulators Discover Flaws In Audit Of Neobank Revolut
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In a report released in July, the Financial Reporting Council stated that an audit conducted by the accounting firm BDO of an unnamed "financial services provider" was "inadequate" and exposed the company to the "risk of an undiscovered material misrepresentation."
According to the Financial Times, Europe's second-most valuable private fintech business is currently under pressure to strengthen its internal controls - the procedures that guarantee accurate financial reporting - to comply with legal and regulatory obligations.
The FT was also alerted by a source that BDO's submission of its accounts, the majority of which are due at the end of the month, would take longer than expected because of a more rigid approach. Revolut Newco UK Ltd., the firm created to contain the company's postponed UK banking license, has yet to file its annual reports with the Financial Conduct Authority.
Revolut Gets Hit By Resignations
The announcement comes as the firm got hammered by resignations in its risk and compliance divisions, including its UK heads of risk, compliance, and money laundering.
A permanent license allowing Revolut to provide crypto services in the UK is still pending. However, the Cyprus Securities and Exchange Commission most recently granted it permission to offer cryptocurrency services and introduce several new tokens.