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      "text": "As a multi-billion-dollar global payments processor that claims to have been “technology-first” business from inception, we are surprised that the company did not invest heavily in its IT backbone and upgrade its operations to provide a world-class platform. Instead DLO management chose to take the company public with a back-end payment processing management system that was neither automated nor integrated, and according to three former employees with whom we spoke was dependent upon the teams running and reconciling large volumes of pay-ins and pay-outs on spreadsheets. But if one wanted to run a fraud, manual, non-integrated accounting processes make it much easier.",
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      "text": "In 2020 DLO Limited (Malta) reported a capital requirement shortfall in 2020 explaining that because it declared and distributed dividends out of profits of $13.7 million on Dec 16, 2020, and because “own cash” excludes profit registered during the year, that their year-end Tier I capital fell below the requirement for maintaining its financial institution license. This was remedied by means of the external audit and issuance of the financials and including the profits recorded for the year.",
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      "text": "deficiently governed, and a regulatory arbitrageur. The list of governance and operations choices includes the following:",
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      "text": "Per DLO’s disclosures, its financial operations including its global treasury functions rely heavily on manual operations and expose the company to high risk of material errors across all its key operational areas, ranging from payment amounts, duplicate payments, FX rate calculations, withholding taxes, etc. as well as an increased likelihood of control deficiencies.",
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      "text": "70 DLO 2021 20-F, pp.15, 37\n71 Sources A, B, D, & E also confirmed the heavy use of manual operations in treasury and FX operations.\n72 DLO 2021 20-F, p.64\n73 Note, this is 1 day before the intercompany wire transfer for the loans to DLO’s President and CEO for the exercise of their options.",
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      "text": "Repeated Breaches of Malta Tier 1 Capital Requirement",
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