According to the Financial Times, this marks the largest penalty levied against the UK-based fintech to date. The Bank of Lithuania, which oversees Revolut’s European banking operations alongside the European Central Bank, said the sanction followed the discovery of failings in how the company monitored business relationships and customer transactions. These lapses reportedly impaired the firm's ability to properly detect suspicious financial activity.
According to the regulator, the institution did not consistently identify potentially illicit transactions, prompting regulatory intervention. Revolut had previously been fined EUR 70,000 in 2022 by the same authority for delays in submitting its financial statements.
A representative from Revolut stated the company had worked with the Lithuanian central bank to rectify the identified issues. The firm reportedly implemented a remedial plan and made internal changes to address the regulator’s concerns. While the company emphasised its commitment to meeting compliance standards, it acknowledged the need to strengthen existing controls.
Regulatory pressure on digital banks has increased in recent years. In the UK, the Financial Conduct Authority (FCA) has raised concerns about whether challenger banks have sufficiently adapted their compliance systems to match their rapid growth. In 2022, the FCA warned that rising reports to the National Crime Agency reflected inadequacies in how some neobanks vetted new customers.
A source familiar with the situation cited by the Financial Times noted that the fine applied to Revolut amounts to less than 0.5% of the company’s 2023 revenue and was well below the legal maximum of 10% of turnover under Lithuania’s AML legislation. The source also indicated that the findings did not point to confirmed money laundering incidents but focused instead on procedural improvements.
Revolut, which obtained a European banking licence from Lithuanian authorities in 2021, is authorised to operate across the EU. However, it has faced delays in securing a full UK banking licence, with its application stalling for over three years. In 2023, auditing firm BDO flagged weaknesses in Revolut’s IT system, suggesting that the company’s reported 2021 revenues may have been at risk of material misstatement.
The fintech was granted a restricted UK banking licence in July 2024. It is expected to exit its transitional ‘mobilisation’ phase later this year, completing the process required to begin offering full banking services in its domestic market.
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