Fine of AUD 123,000 Imposed on Revolut Australia due to Delayed Submission of Compliance Reports
Revolut Faces Penalty in Australia for AML/CTF Compliance Lapses
In a recent development, the Australian arm of fintech giant Revolut has been fined AU$187,800 by AUSTRAC (Australian Transaction Reports and Analysis Centre) for late submission of compliance reports. This penalty was imposed due to Revolut's failure to submit international funds transfer instructions within the required timeframe under local anti-money laundering laws.
The news comes as AUSTRAC has been tightening regulations on payment platforms, with 13 remittance and digital currency exchange providers facing action this year alone. AUSTRAC's CEO, Brendan Thomas, emphasized that failures to report need to have regulatory consequences.
Revolut, established in 2015 as a challenger bank, entered the Australian market in 2019 when it opened its Melbourne office. Primarily offering remittance services under its Australian unit, the company had earlier revealed its plans to apply for a banking licence in the country. However, no updates regarding this matter have been provided since.
Meanwhile, AUSTRAC has raised serious concerns about Binance's anti-money laundering and counter-terrorism financing (AML/CTF) controls and ordered the company to appoint an external auditor. This action follows Binance's failure to comply with AML/CTF regulations, resulting in a penalty from AUSTRAC.
On a positive note, Revolut has been cooperative and has taken prompt steps to rectify the issue. The company identified the problem and strengthened its controls, ensuring compliance with local regulations moving forward.
In a separate development, Revolut was granted a UK banking licence last year after a three-year delay. The company has also secured a banking licence in Mexico and is seeking one in New Zealand. Additionally, Revolut has pledged to invest over €1 billion (US$1.1 billion) in France and intends to apply for a banking licence there.
As AUSTRAC continues to investigate more than 50 other firms for similar compliance lapses, it is clear that adherence to AML/CTF regulations is a priority for the organisation. Revolut, for its part, has shown a commitment to rectifying its mistakes and moving forward in compliance with these regulations.
