As I was finalizing this issue another news about Revolut came out. Their CFO resigned after the journalists discovered Revolut has shut down its AML system.
The reason for both news is the same — the pressure of so much VC money pushes some startups to grow at all costs and it’s especially dangerous to move fast and break things in the financial world.
The startup and O’Higgins have been under pressure after a Daily Telegraph report that revealed that Revolt switched off an anti-money laundering system that flags suspect transactions because it was prone to throwing out false positives.
According to the Telegraph, the system was inactive between July-September 2018, which potentially allowed illegal transactions to pass across the banking platform. Revolut did not contact the Financial Conduct Authority to inform the regulator of the lapse, Telegraph reporter James Cook said.