Revolut - money laundering ?

[jakonda]

I don't know if this can affect Revolut account holders but they are accused of violating banking rules.
This can be a big hit for them if it is true.

Digital bank Revolut's money laundering lapse exposed

I don't remember exactly who it was, but someone (quite active) at this forum was discussing those EMIs business models (how they are not sustainable etc.)

Looks like those fintech unicorns are just hype & laundry machines.

 

[Martin Everson]

I don't remember exactly who it was, but someone (quite active) at this forum was discussing those EMIs business models (how they are not sustainable etc.)

That was me .

To me 99% of these EMI's that pop up and are run by Eastern Europeans or Russians whether in Western Europe or Eastern Europe are laundromats. Go through them all it's just a bunch of spotty faced young naive techies with a macbook pros setting up these EMI's with mafia money. Leopay anyone???...cough cough.

 

[JohnLocke]

This seems to be something that had to be a problem sooner or later. I agree with @Martin Everson on the rest.

 

[Mr Magoo]

Sooner rather than later there will be a big shakeout of all those EMI's and hopefully I opened accounts with the ones that survive

 

[Tax Cow]

If Revolut grows a bit more, they will be of "systemic importance". That's the best kind of insurance a laundromat could have

But that aside, KYC alone is sufficient and all a bank or EMI should be concerned about. I do not support any AML BS regulation. It does not work - as useless as Trump's border wall. Drugs will get over it with the help of a 2K retail drone, and illegal humans get under it with the help of a Venezuelan grave digger who might work for food alone at this point.

A crook with a big enough cash stack or right connections can get an account at Barclays, BNP Paribas or Deutche. Just scratching the surface of recent AML scandals, it is safe to assume that any top 5 bank in France, Germany or UK is laundering more per day than all EMI's combined in a month.

 

[dirtyharry]

Revolut will make it long term, in short they may have troubles but get out of it.

 

[Martin Everson]

If Revolut grows a bit more, they will be of "systemic importance". That's the best kind of insurance a laundromat could have

lol .

Well its a laundromat with an eastern European banking license now. While NATO builds up armies around Russian borders. Russia build up EMI's around its borders and UK to protect it from future sanctions .

 

[Nyep]

Revolut has responded to the accusations in a blog post.

 

[Martin Everson]

Revolut has responded to the accusations in a blog post.

Ok I will give the Russian startup that is Revolut the benefit of the doubt I guess .

Russian fintech start-up in UK plans expansion

 

[LisaSimpson]

Some companies like paxum created a blacklist of companies. For instance Paxum blacklisted epayments. So, if they decide to block revolut, you will be able to have a Revolut account but you will not be able to transfer to your revolut account.

 

[Martin Everson]

Seems Revolut is moving European operations to Ireland from UK now. That speaks volumes about how companies feel about a future brexit deal.

https://www.irishtimes.com/business...-a-boost-as-revolut-moves-to-dublin-1.4163049

 

[SaintVince]

Well, this is worrying but reading between the lines it could be a competitor trying to tarnish their reputation.

as for brexit related relocation let’s see the big banks starting to move offices soon... Paris, Munich, Dublin... time to get popcorn and enjoy the circus show

 

[Martin Everson]

The big banks are basically ganging up on UK government and blackmailing them into tax cuts. However most of the Fintechs will move most of their major operations out of the UK as they have plenty of staff in eastern europe (i.e Azimo). It is just a case of how they carefully word their decision to not offend their UK customers...lol.

World's biggest banks pushing for £4bn post-Brexit tax cuts to boost the City - CityAM

 

[Tax Cow]

If there's one thing the UK must get out of Brexit, it's the end to "Please provide a proof of UK address" in their financial services sector.

Why on Earth did they agree to that baggage in the first place and harm their major export? Concerns over money laundering?

On the topic of "greater good", why doesn't Germany restrict BMW sales to Germans to tackle climate change?

 

[Martin Everson]

On the topic of "greater good", why doesn't Germany restrict BMW sales to Germans to tackle climate change?

Because the German car manufacturers are major employers and can also act like a cartel by threatening to move production out of Germany . I mean BMW already produces its X3 - X7 models in US. They could move German production to China as that is now the biggest export markets for German automakers.

 

[Tax Cow]

That's a rhetorical one @Martin Everson

But it would be a fun troll argument to bring up somewhere during the negotiations.

@BorisJ "Greater good for greater good! You want to restrict our export of financial services. We want some climate-related concessions from your side"

1. Quotas on export of French wine (major waste of fresh water)
2. Quotas on export of German non-electric cars (major air pollutant)

 

[JohnLocke]

How did we end with blackmailing and German Car production to be relocated to the US or China? We are going off topic here guys.