Lending Standards Board Provides Statement Following Reports of UK’s FCA Investigating Revolut Over Alleged Mishandling of Red-Flagged Accounts

Digital bank Revolut is facing scrutiny from the UK’s Financial Conduct Authority (FCA) over allegations of allowing money to be transferred from accounts flagged as potential scams. The Lending Standards Board (LSB) is responsible for overseeing the CRM Code, which mandates firms to detect and prevent authorized push payment scams. Laura Mahoney, Head of Policy at the LSB, emphasized the importance of implementing robust prevention measures against fraud, as criminals become increasingly malicious and innovative. The LSB recently updated the CRM Code, which requires firms to further identify high-risk accounts and monitor incoming payments for suspicious activity. The FCA, responsible for monitoring Revolut’s payments unit, is currently in talks with the company, along with support from the National Crime Agency (NCA), to address alleged failures that occurred in July and August. Reports suggest that around £1.7 million was transacted from the flagged accounts, although Revolut reported a transfer of only £500,000 to the FCA. Meanwhile, discussions continue regarding Revolut’s application for a banking license to support its business growth.

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