Revolut denies fresh police fraud probe over money transfer

By Roger Baird on Tuesday 5 March 2019

Digital Banking

The beleaguered bank faces an investigation over a transfer of more than £70,000.

Revolut denies fresh police fraud probe over money transfer
Image source: Revolut

Under-fire digital bank Revolut denies it is under police investigation for fraud over a money transfer.

However, the police are investigating claims concerning a payment of over £70,000 involving the challenger bank, according to the Financial Times. 

The move comes after it emerged last week that the business, valued at $1.7bn at its most recent fundraising, is being probed by regulator, the Financial Conduct Authority (FCA), over whether it has flouted anti-money laundering controls.

Reports of a toxic company culture, plagued by high staff turnover, where job applicants are asked to work for free, also surfaced about the bank last week.

The UK's Action Fraud unit, which assesses serious reports of fraud and cyber crime, told AltFi it is tracking the movements of a £73,515 payment involving Revolut. This comes after a complaint was made by Paul Carlier last month, filed on behalf of his wife, who said she had not received the payment owed to her in January. Mr Carlier’s wife holds a business account with the bank.

However, the bank said in a statement that the payment details it was given “were incorrect and so the funds never reached Revolut”.

It added: “There is no investigation into fraud at Revolut. One of our customers registered a complaint after funds did not reach their account because incorrect details were entered during the payment stage. Our team have proactively engaged with both the customer and our payments partners to resolve the case and to ensure that the funds were located. We understand that the customer escalated his dissatisfaction to the police authorities by submitting a non-fraud complaint via the action fraud portal - this organisation has no police investigatory powers."

A statement by the City of London Police said: “We are currently looking into some inaccuracies in an article that has been published by the Financial Times.”

The Financial Times, after publishing its story on Tuesday, amending it a few hours later, removed it from from its website the following day.

A police spokeswoman added that Action Fraud assessments range between days to weeks, before deciding whether a crime has been committed and passing it onto the relevant police body to progress the investigation. The Action Fraud unit does not have any investigatory powers.

Last week, it also emerged that Revolut’s chief financial officer Peter O’Higgins had resigned. However, the firm, founded by Nikolay Storonsky (pictured) in 2015, said the departure had nothing to do with the ongoing anti-money laundering probe carried out by the FCA.

The bank had previously reported a string of suspicious money-laundering transactions on its digital payments system to the FCA and National Crime Agency earlier in 2018.  


UPDATE (17.03.21). Since publication, Revolut has made clear that the error referenced in its above quote was caused by an incorrect interpretation of the payment instructions by one of the parties in the payment process, not by the customer.

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