The Revolut Revolution Will Not Be Televised as Company’s Employees Broadcast Their Truths
UK financial technology and banking services firm, Revolut Ltd, has been accused of some serious financial crimes. The company is said to have deliberately removed a provision that prevents money laundering and other crimes and also went ahead to make and impose laws that ultimately made the firm a terrible and toxic place to work.
Further Details on the Story
It was recently made known that for over three months in 2018, Revolut knowingly deactivated a system it had that automatically flags or completely prevents shady transactions and keeps them from completion. Because this feature was deactivated, a few thousand different shady and illicit transactions may have been allowed by the bank, in this period. This happened between the months of July and September of 2018 and is said to have generated at least 8,000 different illegal transactions.
A few months later, an unknown informant reached out to Revolut’s Board, alerting them about the irregularities. A few sources say that the firm was unwilling to take any action about it until the informant reached out. After an official investigation was started, a letter to the Financial Conduct Authority in the United Kingdom was publicized where the firm supposedly acknowledged its own wrongdoings. However, a little later, Revolut announced that the said letter was a draft and was “never sent.”
Revolut’s Personnel Issues
It was reported a few days ago, that Peter O’Higgins, the Chief Financial Officer at Revolut, resigned his position this January. He joined the firm in 2016 shortly after spending a period of 12 years at American multinational investment bank and financial services company, J.P. Morgan.
Furthermore on Revolut’s personal problems, a detailed report was released a few days ago, that basically revealed that the fast growth and development of the firm was a direct result of stress and toxicity in the workplace for the employees. This constantly involved ridiculous and unachievable targets, unpaid labor and many other terrible conditions. It is said that at least 80% of the bank’s employees only lasted about a year.
Response from Revolt
A few days ago, Nikolay Storonsky – the CEO and co-founder of Revolut – put out a response to all the drama surrounding the company, via the firm’s blog. His post titled “Let Me Set The Record Straight” responds to some of the issues that have been spread in the media. Describing the stories as “misleading information”, Nikolay tries to explain the real events that happened.
According to the post:
“In July last year, we rolled out a more advanced sanctions screening system in parallel with our existing controls. Like any other technology company, we’re always looking to improve our systems…. During the initial testing stage of these new systems, we decided that they were not calibrated to a standard that we would expect, so we therefore decided to temporarily revert to our existing controls, while we continued to enhance the new systems.”
The post further explained that none of the changes implemented on their screening and security system caused any malfunction that allowed illegal transactions to be carried out on their platform. They also denied any claims that a letter was sent to the Financial Conduct Authority since there was no breach in the first place.
According to Nikolay:
“At no point during this time did we fail to meet our legal or regulatory requirements. We conducted a thorough review of all transactions that were processed during this time, which confirmed that there were no breaches. This roll-out did not result in a breach of laws and requirements – so we did not send a formal notification to the regulator.”
Lastly, Nikolay said that the parting of Peter O’Higgins is not in any way connected to the recent events at Revolut. Nikolay says that Peter left because “he feels that the business will require someone with global retail banking experience as we prepare to apply to become a licensed bank in multiple jurisdictions.”