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Revolut CFO quits after auditor BDO warning

standard.co.uk

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Re: Revolut CFO quits after auditor BDO warning

#71

Post by tzs »

jlokier wrote: post #64
tzs wrote: post #38

Earlier quoted context omitted.

> The company has a pending application for a UK banking license for the past 28 months; the turnaround time for that in the UK is 12 months Wow...I'm a bit surprised. We've had a pending application for VAT registration in the UK since sometime in the 1st quarter of 2019. I had assumed that if a government is so short of resources that they can't manage to process applications to collect taxes for them, they would p…

I did a UK VAT registration in 2020 and it took about a month. I did one back in 2005 or so and it took a similar time. Years is exceptionally slow. The "additional fee" process is only intended to cover a few months at most. It doesn't work for a long period as your customers can't claim back the amount paid until they receive a replacement invoice formally recordable as VAT, when your registration comes through. If…

I wonder if the difference is that you are in the UK? We're not. We're in the US.

Prior to the Brexit implementation we dealt with VAT on sales to EU customers using the VAT MOSS system, with Ireland being the country we were registered with.

Re: Revolut CFO quits after auditor BDO warning

#73

Post by bboygravity »

zx8080 wrote: post #56
bboygravity wrote: post #55

Earlier quoted context omitted.

My best guesses: 1. A dumb money laundering detection algorithm that does it's thing with 0 human interaction (basically the same reason people get locked out of their Google accounts for no reason). 2. Untrained and insufficient customer support (again similar to Google). 3. In my case: asking for documents to prove residency (they're supposedly legally obligated to do so,, but none of my other banks ask for this).…

Do they require the additional docs when you top up the account or when try using those money/transfer out?

They require the docs only for transferring out.

So you can still receive money, but you cannot access it.

Re: Revolut CFO quits after auditor BDO warning

#74

Post by mitthrowaway2 »

Mistletoe wrote: post #30
krona wrote: post #16

The Revolut UK banking chief executive also just quit 'for unrelated reasons' after texting a death threat to a customer: https://www.telegraph.co.uk/business/2023/05/13/revolut-exec...

> He has taken up a new executive role at telecoms business Lycamobile. Unbelievable. It’s impossible for people in this caste to fail.

If they were allowed to fail then they might not take the big risks that they deserve big rewards for taking! And then what would be left to trickle down to everyone else?

Re: Revolut CFO quits after auditor BDO warning

#75

Post by zx8080 »

bboygravity wrote: post #73
zx8080 wrote: post #56

Earlier quoted context omitted.

Do they require the additional docs when you top up the account or when try using those money/transfer out?

They require the docs only for transferring out. So you can still receive money, but you cannot access it.

Very profitable business. I remember Paypal doing the same in 2008-2010 (I stopped using them after they locked acc and stole some hundreds dollars).

Re: Revolut CFO quits after auditor BDO warning

#77

Post by ztrww »

heavenlyblue wrote: post #69
ztrww wrote: post #63

Earlier quoted context omitted.

True. But since he said that he’ll be waiting at his own home that probably means that the unhappy customer was threatening to visit him which is also a bit scary…

Can you please link the URL where that conversation is actually disclosed?

I don’t think it is?

I mean I obviously think that the executive’s message is deranged but I can’t think of any other scenario why would he write something like that.

Unless he’s talking about waiting at the customer’s house …

Re: Revolut CFO quits after auditor BDO warning

#78

Post by ztrww »

SilverBirch wrote: post #70
ztrww wrote: post #62

Earlier quoted context omitted.

> and to do that they need a UK banking license Why does it specifically have to be an UK banking license?

Two things: first they’re a bank, in the Uk, it looks terrible to not have a banking license and that’d kill their IPO price. Second, there are limitations on customer deposits and the services they can provide because they aren’t a bank, for example they aren’t currently Uk equivalent of FDIC insured. There’s basically an assumption that their banking license will massively help both their growth and their value per…

But they do have a license in Lithuania which means all the deposits are covered by their insurance. I agree about the IPO part but I really find it hard to imagine an IPO would make any sense for them at this point. I don’t think there is any chance they could reach their current private valuation…
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