Revolut Auditor Flags Concern About $576 Million of Revenue in Long-Delayed 2021 Accounts (reuters.com) 15
Revolut's auditor BDO was not able to independently verify three-quarters of the 636 million pounds ($765 million total revenue reported by the fintech firm in its long-delayed 2021 accounts, Revolut's annual report showed. From a report: The 2021 accounts were signed off this week after months of delays, following a revamp of Revolut's internal accounting systems and heavy regulatory scrutiny. But BDO flagged concerns that it could not verify 477 million pounds of revenue, nor vouch for their "completeness or occurrence". The company's "IT systems weren't designed in such a way that would allow for IT or business process controls to be effectively tested throughout the year," BDO added. "Verification procedures are not able to provide sufficient appropriate assurance" over Revolut's main revenue generators which include subscriptions, cards delivery, foreign exchange and wealth, it added. BDO warned that some information may be "materially misstated." Revolut was valued at around $33 billion in its last funding round in 2021, making it then Britain's most valuable start-up
And that's what you call... (Score:3)
Fraud and I'd expect a few execs to go to prison or Bed Bath and Beyond themselves. [nbcnews.com]
wat (Score:5, Informative)
If you're like me, you've never heard of these guys.
Revolut [revolut.com] says they're "building a borderless, customer-centric platform which feels personal to everyone and will serve as their trusted companion to manage and grow their money" and also plans to "continue empowering businesses with the tools they need to start, run, and scale. In practice, this means enabling them to control their spending and minimise cost, accept payments, and manage their balance sheet and employees."
Is it just me, or does this sound like a company that specializes in doing layoffs under contract is trying to become your personal accountant?
WP sez [wikipedia.org] "It offers accounts featuring currency exchange, debit cards, virtual cards, Apple Pay, interest-bearing "vaults", stock trading, crypto, commodities, and other services." and also that it was founded by Nikolay Storonsky, a son of a senior manager at Gazprom, and Vladyslav Yatsenko [forbes.com], vocally anti-Putinist programmer and CTO.
Re: (Score:2)
Re: (Score:3)
Sounds like a bank to me. Are they just trying to get around financial regulation rules like the crypto exchanges?
They have a Lithuanian bank licence https://www.finextra.com/newsa... [finextra.com]
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If you're like me, you've never heard of these guys.
Revolut [revolut.com] says they're "building a borderless, customer-centric platform which feels personal to everyone and will serve as their trusted companion to manage and grow their money" and also plans to "continue empowering businesses with the tools they need to start, run, and scale. In practice, this means enabling them to control their spending and minimise cost, accept payments, and manage their balance sheet and employees."
Is it just me, or does this sound like a company that specializes in doing layoffs under contract is trying to become your personal accountant?
WP sez [wikipedia.org] "It offers accounts featuring currency exchange, debit cards, virtual cards, Apple Pay, interest-bearing "vaults", stock trading, crypto, commodities, and other services." and also that it was founded by Nikolay Storonsky, a son of a senior manager at Gazprom, and Vladyslav Yatsenko [forbes.com], vocally anti-Putinist programmer and CTO.
"grow their money" = grow Revolut's money
Finally, a dash of transparency....even if it was an accident.
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It's simple, Revolut is Paypal.
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Here is a list of the main features:
- Everyone gets an IBAN.
- You can hold different amount of any currency and convert between them at FOREX rates.
- You get two debit cards (Mastercard) one is virtual and one is physical. You get another virtual card that rotates its number after each transaction.
- You can transfer (or request) money instantly to other users without any taxes - perfect for splitting lunch bills.
These ar
banks (Score:2)
they're just like any other bank. only thing is they got caught
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The audit-requirements for banks are crazy. You need to be essentially able to trace every single cent that goes through their systems. This could mean they will lose their banking license (apparently they have one from Lithuania) and it will mean they will face severe restrictions and even more stricter audit requirements in the future. It is also a pretty sure sign of criminal activity on a massive scale, something BDO will be thinking but not saying.
Finance company FAILS audit (Score:4, Insightful)
If you want people to trust you with their money, you really should be able to pass an audit.
The fact that they have done multiple rounds of funding and are at a $33B valuation without seemingly ANY financial and operational controls should be the end of them.
This isn't futz around the edges kind of a problem. This is a new executive team and operational overhaul.
I'll be surprised if there aren't more announcements about financial improprieties and some executives jetting off to non-extradition countries.
$33B valuation. Should be ZERO.
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Well not zero, they do provide some genuinely useful services.
The question of wether they should be worth $33B or if that's been inflated by some creative/fraudulent accounting is another matter.
About the most damning finding possible... (Score:2)
Also a sure sign of criminal activity on a massive scale. BDO will very likely know where these funds really are but they will have found that admitting that would make them an accomplice. They are covering their asses here.
Revolut - (Score:2)