Revolut has already implemented the AML IV directive, the aim of which is to prevent money laundering and financing terrorism. The new law is much more strict than previous ones of its kind
Readers of my articles about Revolut often complain in the comments that the British fintech company will sometimes block their accounts without giving any significant reason for it. I decided to look into the matter and find out when exactly Revolut app and card users can experience such restrictions. I asked the company's representatives to give me some examples of regulation violations that would result in a user being locked away from their account. Here they are.
One reason an account may be blocked is when a user transfers money to it from a credit card and then transfers that money to a different account. Despite this being against the rules, users often do it - for various reasons. It can be a way to gain cheap access to cash from a credit card by withdrawing it from an ATM. They can also transfer the same money, which is used in collecting points in loyalty programs, such as miles&more.
Some users also order digital cards to set up new Netflix accounts and benefit from 30 days of free access to the movie and TV show streaming platform. After the free period ends they delete the card, order a new one in the app and repeat the process. Some go so far as to sell such access online.
Another example is limited sneaker shoe sales. Normally one person can only be put on the customer list once by providing their credit card number. Some Revolut users would set up 15 cards in the app to be able to buy 15 pairs of shoes.
A user can also have their account blocked if they top up their account in the app using someone else's card. Revolut is only available to adults - setting up an account using, for instance, a family member's credentials, is not allowed. One user can also only have one account. If you're a business owner, set up a business account - the fintech company does not allow business transactions from individual customer accounts.
Revolut users are also not allowed to use their accounts for fundraising. It's unlikely anyone will mind if you and a few friends collect money for someone's birthday present, but larger operations will definitely be noticed.
I've also been told that people who work and live in Poland often give their Revolut cards to their relatives abroad. It would be a very easy way to give someone money if it weren’t for the fact that it is illegal to use someone else's card - which applies to other financial institutions and banks as well. It's easy for Revolut to track such cases because the card is assigned to an app and a smartphone, which can easily be located.
A good thing to be aware of is that Revolut has already implemented the AML IV directive, the aim of which is to prevent money laundering and financing terrorism. The new law is much more strict than previous ones of its kind. This means that you can expect Revolut to ask you about the source of your income if you deposit larger sums of money into the account. You may be asked to provide your PIT tax form, a contract that explains the transfer of funds to you or, for instance, an invoice.
One user commenting on my article on Revolut mentioned that the company asked them to provide scanned images of their bank cards. Revolut claims that this isn't possible. Remember - no bank or financial institution will ask you to provide any sensitive information, such as logins and passwords or full card numbers. Providing this type of information is unsafe because you never know who will receive it and what they will do with it.
What can you do if you broke the rules and your account is deactivated? Revolut noticed that some users report the problem in the application chat, but when they don't get an immediate response or when they get a reply from the Rita bot, they leave the conversation and don't check for further messages later on. After a while they start the process from the beginning. This may cause the problem not to be resolved for a longer time. Revolut representatives are asking users to be more patient and consistently participate in the chat conversation. Unfortunately to do so they need at least a basic command of English because, for the time being, the consultants can only talk to them in that language.