Regulator identifies control shortcomings; Revolut says no confirmed laundering cases
Lithuania’s central bank has imposed a €3.5mn fine on Revolut for failures in its anti-money laundering (AML) processes, marking the UK-based fintech’s largest financial penalty to date.
The fine follows a routine inspection by the Bank of Lithuania, which revealed “violations and shortcomings in the monitoring of business relationships and operations”. These deficiencies, the regulator said, led to Revolut “not always properly identifying suspicious monetary operations or transactions carried out by customers”.
Revolut, Europe’s most valuable start-up with a valuation of $45bn, operates across the EU under a Lithuanian banking licence and is supervised by both the Bank of Lithuania and the European Central Bank. The fintech secured its European licence in 2021, allowing it to operate as a fully fledged bank across the bloc.
The Bank of Lithuania stated that Revolut’s European bank had “acknowledged the identified violations and deficiencies, took action on its own initiative to eliminate them, and prepared and agreed on a plan to eliminate the violations and deficiencies”. The fine is the largest ever issued by the central bank and was determined based on the severity of the breaches and the revenue of Revolut Holdings Europe, which oversees its regulated operations within the European Economic Area.
Revolut responded by reaffirming its commitment to robust compliance:
“Revolut Bank is committed to the highest standards of regulatory compliance and co-operated with the Bank of Lithuania in taking immediate action to address the procedural deficiencies,” a spokesperson said.
A person close to the company clarified that no confirmed instances of money laundering had been found, and that the findings were focused on enhancing existing internal controls. The fine, they added, represents less than 0.5% of Revolut’s 2023 revenue—well below the maximum penalty of 10% permissible under Lithuanian AML laws.
This is not the first time Revolut has faced scrutiny from Lithuanian authorities. In 2022, the Bank of Lithuania fined the company €70,000 for failing to submit its financial statements on time.
The fintech giant has faced regulatory challenges elsewhere as well. Its application for a UK banking licence was delayed for over three years amid concerns, including a warning from auditor BDO in 2023 that Revolut’s IT systems risked material misstatements in its 2021 revenue. Revolut eventually received a UK licence with restrictions in July 2024 and is expected to exit the mobilisation phase later this year, allowing it to fully operate as a UK bank.
Revolut reported a record pre-tax profit of £438mn ($559.5mn) in 2023 and has been positioning itself as a leader in digital banking. However, the latest fine renews focus on the growing scrutiny of neobanks’ compliance frameworks as they scale rapidly.
In 2022, the UK’s Financial Conduct Authority (FCA) expressed concerns about neobanks’ ability to effectively screen new customers after a surge in suspicious activity reports filed with the National Crime Agency. In a similar case, the FCA fined challenger bank Starling £29mn last year for “shockingly lax” financial crime controls.
Meanwhile, Revolut’s competitor Monzo remains under civil investigation by the FCA over AML control issues, a case that was downgraded from criminal status in 2023.
Revolut has signed a settlement agreement with the Lithuanian central bank and stated it continues to invest in compliance and technology to maintain “best-in-class controls in the fight against financial crime”.
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Source: Financial Times / Reuters
