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  "documentTitle": "Remitly Global, Inc. (RELY)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2025-03-11 00:00:00",
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  "notes": "Uses a combination of a pull-quote from a former employee and excerpts from regulatory documents to build a case of negligence.",
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      "kind": "callout",
      "text": "We find evidence from a recent employee interview, a regulatory consent order in Florida, and from Remitly's Australian filings that it may have underspent in KYC (Know Your Customer) compliance which is designed to prevent money laundering. Additionally, Remitly's IPO Prospectus mentioned \"KYC\" fifteen times, but its recent 10-K did so just twice. If so, this raises the risk of additional regulatory sanctions, which could further undermine public trust of the Company.",
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      "text": "We find evidence from a recent employee interview, a regulatory consent order in Florida, and from Remitly's Australian filings that it may have underspent in KYC (Know Your Customer) compliance which is designed to prevent money laundering.",
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      "text": "Excerpts of Remitly's Recent AML Consent Agreement",
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      "kind": "paragraph",
      "text": "Australian Regulatory Non-Compliance: As a remittance service provider, registered with AUSTRAC, the Company is subject to local laws and regulations... The Company does not disclose any contingent liability for the year ended 31 December 2023.",
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      "kind": "quote",
      "text": "\"Very similar topics, but they need to be 100% separate... you never want an A-plus grade in compliance, you want a B grade when you come back from the auditors. You always want them to find something because, otherwise, you're investing too much into it.\"",
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      "text": "\"The compliance guy I was working with at the time to launch Passbook, he was saying, you never want an A-plus grade in compliance, you want a B grade when you come back from the auditors. You always want them to find something because, otherwise, you're investing too much into it. You're probably creating more customer pain and you're doing too much.\" — Former Remitly Software Engineer",
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      "kind": "source-note",
      "text": "Source: Tegus Interview, Oct 2,2024, Florida Office of Financial Regulation, Australian Filings, RELY 2024 10K vs. IPO Prospectus , Spruce Point red emphasis",
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      "text": "Evidence Suggests Remitly May Have Underspent In KYC / Money Laundering Compliance",
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