Japanese Regulator Orders Local Revolut Unit to Improve AML Measures

[forex4you]

Japanese Regulator Orders Local Revolut Unit to Improve AML Measures

<p>On Friday, Japan's Kanto Local Finance Bureau issued a business improvement order against Revolut Technologies Japan, Inc., which is the local subsidiary of the London-headquartered fintech.</p><p>The order came after the <a href="https://www.financemagnates.com/cryptocurrency/regulation/japans-fsa-starts-discussions-to-impose-stricter-crypto-laws/" target="_blank">Financial Services Agency</a> (FSA) conducted an on-site inspection of the company, finding "serious problems" in the firm's "control environments for governance, management of outsourced contractors, and <a href="https://www.financemagnates.com/terms/m/money-laundering/" target="_blank" id="f30ffb65-351e-44d6-9dae-0714f08b59b2_1" class="terms__main-term">money laundering</a> and terrorist financing risk management."</p><p>The regulator elaborated that the Japanese subsidiary of Revolut failed to fully establish proper governance for providing funds transfer services in a proper and steady manner. Further, the Japanese arm did not check the primary services, like funds transfer services in a proper and steady manner, it outsourced to its London-based parent.</p><p>Additionally, <a href="https://www.financemagnates.com/tag/revolut/" target="_blank">Revolut</a> Japan did not develop proper checks on <a href="https://www.financemagnates.com/institutional-forex/money-laundering-case-involving-credit-suisse-finds-the-bank-guilty/" target="_blank">money laundering</a> and terrorist financing <a href="https://www.financemagnates.com/terms/r/risk-management/" target="_blank" id="aedb745c-adf9-415f-97e2-ee56a920f0f8_2" class="terms__secondary-term">risk management</a>. In addition, it lacked a system for strict transaction verification and had no rules for determining suspicious transactions.</p><p>Improvement Orders</p><p>To rectify the issues, the Japanese regulator provided a series of business improvement orders to Revolut Japan.</p><p>The company needs to establish a controlled environment to ensure proper governance, legal compliance, management of outsourced contractors and money laundering and terrorist financing risk management.</p><p>Also, the Japanese firm needs to submit a business improvement plan to the regulator by October 3, mentioning the specific measures it is going to take based on the order and implement them immediately after the submission.</p><p>Moreover, the company has been ordered to report its progress and implementation status quarterly to the regulator until the completion of all the necessary implementations.</p><p>Meanwhile, Revolut has been aggressively expanding its global footprint. Most recently, it gained approval from the regulator in Cyprus for offering cryptocurrency services.</p>

This article was written by Arnab Shome at www.financemagnates.com.

Source: Japanese Regulator Orders Local Revolut Unit to Improve AML Measures