Revolut, a neobank app that offers financial and crypto services, is reportedly under regulatory spotlight as its internal audits of controls revealed "unacceptably high" risk of "material misstatement," the Financial Times has learned, citing people familiar with the matter.
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The report says the London-based company's audit — conducted by BDO — was criticized by the Financial Reporting Council. Although the FRC didn't specifically name Revolut in its annual report on the quality of the accounting, it said that BDO's audit of an unnamed company was "inadequate" to find compliance flaws and "as a result, the risk of an undetected material misstatement was unacceptably high."
The FRC reportedly summarized that the company "needs to have the control environment of a bank," adding that Revolut was "definitely trying to do all the right things."
The news comes just a few months after senior management left the company, including its money laundering reporting officer, chief risk officer and data protection officer in the UK. Revolut is still awaiting its banking license in the UK.
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