Revolut fails to obtain banking license in Britain due to ties with Russia — Bloomberg (UPD)

The fintech company Revolut, co-founded by a Ukrainian, is problematic to obtain a banking license in the UK. This process is being delayed indefinitely due to the startup's likely ties to Russia, Bloomberg writes.

It is known that the company Revolut Inc. with an estimated value of approximately 3 33 billion, it applied for a British banking license back in 2021.

At the same time, the British, according to the agency, want to make sure that Revolut has the appropriate requirements and risk management capabilities to avoid tripping over other financial "disruptors", especially due to the fact that it works with cryptocurrencies.

Disappointed, Nikolai Storonsky, who hoped to get a license by early 2022, asked British Treasury Chancellor Rishi Sunak why it took so long: three months later, approval still hasn't arrived. The new vigilance against any business associated with Russia did not help," the article says.

The UK also has concerns about the Revolut crypto trading service, which generates large revenues, and whether upstart banking programs are ready to fight money laundering and fraud.

Russia's war with Ukraine is now very much drawing attention to any Russian ties, no matter how free they may be. Storonsky moved from Russia to London at the age of 20, earned his billions by starting his own business there, and unequivocally condemned the war. Another Revolut co — founder, Vlad Yatsenko, is Ukrainian; both he and Storonsky have British passports.

According to sources of the publication, now they allegedly close the Moscow office of the company.

However, it is known that Storonsky's father, who was born in Ukraine, Nikolai Mironovich Storonsky, is a director of Gazprom promgaz, a division of the Russian gas giant. Therefore, British regulators must decide whether this is an"appropriate factor".

Moreover, these family roots were first investigated in 2019 after Revolut received a banking license in Lithuania, and the MP accused her of involvement in the Kremlin.

In addition, fintech is supported by DST Global, a venture capital firm founded by Yuri Milner, the richest Russian in Silicon Valley. By the way, now he has distanced himself from Moscow, cursing the "Russian war".

It is known that Revolut already has a banking license for the European Union countries. But the intention to get a license in the UK indicates the desire to become a financial "Super-application" around the world.

Now this fintech product already offers money transfers, in-store purchases, stock trading, and pet insurance. The license must add secure current accounts in the UK with overdrafts and loans, which is the foundation of any adult bank.

In addition, the owners of Revolut want to get a license in the United States, although the Americans are unlikely to agree to this until the British situation is resolved. The head of the company in the United States resigned in December 2021, including due to a delay in obtaining a license.

UPD. Revolut subsequently responded to Bloomberg's criticism of problems with obtaining a license in the UK.

"We have regular contacts with the regulator and a long-standing relationship with the PRA (American Chamber of Commerce — Ed.) and FCA (the main body of the UK Financial Supervision Authority — Ed.) and have been working with their teams for some time on our strategy in the UK (long before our official application was submitted)," the company's representatives said in a comment. dev.ua.

Earlier, Revolut banned money transfers in Russia and Belarus and optimized transfers to the Red Cross in Ukraine.

Subsequently, the company also made its financial transactions available in the EU to all refugees from Ukraine, regardless of nationality.