Lithuania Fines UK Fintech Revolut a Record Fine of €3.5 Million for AML Failings

The Central Bank of Lithuania fined Revolut Bank, a Lithuania-registered bank owned by the United Kingdom’s financial services business Revolut, 3.5 million euros for breaking money laundering prevention regulations.

“The Bank of Lithuania carried out a scheduled inspection of Revolut Bank, during which it found irregularities and deficiencies in the area of monitoring business relations and operations,” stated the Central Bank of Lithuania.

Lithuanian regulators reportedly imposed the highest regulatory penalty on Revolut for “violations and deficiencies” in its operational systems.

Through a secondary share offer to both new and current investors, Revolut was valued at $45 billion, surpassing the value of some of the largest banks in Europe, the financial technology company said in August.

According to a recent BBC Panorama report, “Revolut, the UK bank had the greatest number of fraudulent incidents in October, with a single client losing £165k in just over an hour.” Its problems have only been exacerbated since then.

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According to Revolut, the investigation’s conclusions were connected to strengthening existing controls and did not verify any money laundering. The business has collaborated with the Lithuanian central bank to resolve the problems and has underlined its emphasis on regulatory compliance.

A spokeswoman for Revolut Bank stated in a statement that the bank is dedicated to the highest levels of regulatory compliance and worked with the Lithuanian central bank to take prompt action to rectify the procedural shortcomings.

According to the bank, Revolut has taken action to address its inadequacies and has hit a settlement with the central bank.

“Revolut Bank UAB is dedicated to the highest standards of regulatory compliance and worked with the Bank of Lithuania to take immediate action to address the procedural deficiencies,” the company’s spokeswoman remarked.

“We continue to invest to ensure we have best in class controls in the fight against financial crime,” he added.

As per media sources, anti-money laundering violations in Lithuania can result in fines of up to 10% of yearly gross sales. Interestingly, Revout’s €3.5 million charge is less than 1% of its total revenue.