Japan Financial Bureau has placed a strict regulatory measure on a tech company, Revolut Inc. Revolut technology, a subsidiary of the United Kingdom-based Fintech, was accessed by the Bureau, accused of operating without significant growth or improvement.
Japan Financial Bureau Order Improvement for Revolut
According to Financial Magnate, the regulatory framework was issued on the 2nd of September by the Federal agency. The Finance regulator alleged that Revolut Technologies needs revolution and assessment.
According to the Bureau announcement, an inspection was conducted on the company, in which several misconducts were found in the company finance. The company has issues with executive governance, fund management, contractor sourcing, etc.
The financial agency also hinted at a possible sign of money laundering, unforeseen risk management measures, and illicit activities.
“Revolut Technologies Inc failed to develop a proper regulatory or guideline for the subsidiary digital and offline payment services and offerings. The parent company performs important services and offerings like funds transfer and digital banking”.
The agency also accused the Japan arm of Revolut tech of inadequate transaction verification, lack of risk management protocols, and money laundering. Revolut Tech Inc should make sure to properly monitor all its existing arms before applying for more extensions.
Financial Bureau’s Rolls Out Regulatory Measures
After the completion of the inspection, the Japan Financial Service Agency rolled out regulatory measures for the Japan arm of Revolut tech company. The company will be mandated to develop well-secured and proper governance for the Japan arm of the company.
All risk management services must be put in place by the firm. Despite being the subsidiary of a United-Kingdom financial technology company, the regulator was displeased with the company’s status. The agency stated that the UK-based parent failed to monitor or properly reimburse its incubation.
The agency gave a deadline of the 3rd of October, in which the company must submit its improvement plan. The firm must adhere to all the questions and faults stated by the agency, which must be sorted out before the deadline.
Revolut Tech Japan must also submit a detailed report of its financial progress from the beginning of January. This recent investigation is part of the regulation by the Financial Bureau to make the financial industry safer for its citizens.