Revolut Faces Record Fine in Lithuania for Compliance Violations: A Major Regulatory Setback

In a significant move within the financial technology sector, Revolut, a prominent London-based FinTech company, has been penalized with a fine of €3.5 million by Lithuania’s central bank. This action highlights the increasing scrutiny on compliance within the FinTech industry, particularly regarding anti-money laundering (AML) controls.

Details of the Fine Imposed on Revolut

The fine levied on Revolut is the largest ever imposed by the Lithuanian regulatory authority, following a routine inspection that uncovered notable deficiencies in the company’s monitoring processes. Key findings from the inspection include:

• Inadequate monitoring of business relationships
• Failures to effectively identify suspicious financial transactions

Despite these findings, it is important to note that no confirmed instances of money laundering were detected during the investigation.

Revolut’s Response to Regulatory Findings

A spokesperson for Revolut stated, “Revolut Bank is committed to the highest standards of regulatory compliance and cooperated with the Lithuanian central bank in taking immediate action to address the procedural deficiencies.” In light of the regulatory findings, Revolut has:

• Entered into a settlement with the central bank
• Initiated measures to rectify the identified shortcomings

Factors Influencing the Fine Amount

The magnitude of the fine was determined based on:

• The severity of the compliance failures
• The revenue figures of Revolut Holdings Europe, which manages the company’s regulated operations within the European Economic Area

Revolut’s Market Position

Recently, Revolut achieved a remarkable valuation of $45 billion through a secondary share sale involving new and existing investors. This valuation underscores the company’s significant market value, surpassing that of many established European banks. For more information on the evolving landscape of FinTech compliance, visit FinCap.

For further insights into regulatory compliance standards within the FinTech sector, check out our related articles on FinTech Regulations.