Challenger bank Revolut comes under fire after failing to file its accounts on time

Revolut has come under fire for failing to file its accounts on time.

The challenger bank missed the September deadline to submit its 2021 figures and was postponed until the end of last year. But it also missed that deadline, meaning the numbers are almost two weeks late.

The failure to file accounts with Companies House on time has led to concerns about the company’s financial position.

It drew scorn from Dan Neidle, founder of the nonprofit tax advisory and policy group Tax Policy Associates, who said the company’s behavior would be “unthinkable” for traditional banks like Barclays or HSBC.

“Why does a big company like Revolut think it’s okay to break the law and not file its accounts on time?” Writing on Twitter, Neidle added that “obeying the law is not a choice.”

However, a Revolut spokesperson said the accounts had been “finalized” and expected the figures to confirm “previously reported news” that the group was profitable. “We are very proud of this and intend to file the annual accounts in the new year,” said the spokesperson.

Lithuania’s central bank fined Revolut £61,840 last year after one of its European subsidiaries failed to file audited accounts with the country’s regulator.

It is clear that the delay in the UK is related to a dispute between Revolut’s auditor, BDO, and the Financial Reporting Council (FRC), the watchdog of the accounting industry.

BDO’s audits are closely monitored by the watchdog, which means additional paperwork is required before accounts can be signed off.

BDO was criticized by the FRC last year for an ‘insufficient’ audit of Revolut’s accounts.

Despite the delays, the 2021 numbers are expected to confirm Revolut’s profitability, revealing that it is monetizing its currency trading and bringing in about 20 million customers, which would make it one of the largest financial technology companies in the world.