Central Bank Demands Licensing for Revolut to Operate in Ukraine's Financial Market

Central Bank Demands Licensing for Revolut to Operate in Ukraine’s Financial Market

In early February, Revolut announced an exciting development for Ukrainian residents, allowing them to open a European Revolut account and access innovative financial products. This move, however, has raised questions regarding compliance with Ukrainian banking regulations, prompting a response from the National Bank of Ukraine (NBU).

Revolut’s Expansion into Ukraine

According to the NBU, Revolut Bank UAB, a Lithuanian-based financial institution, has not yet acquired the necessary licenses or permits to operate within Ukraine. The central bank issued a statement clarifying that Revolut has neither submitted applications for licenses nor is currently undergoing any business licensing procedures.

Licensing Requirements for Foreign Banks

Ukrainian law mandates that foreign banks wishing to enter the market must either:

  • Establish a branch of the foreign bank in Ukraine
  • Obtain a banking license issued by Ukrainian authorities

Both options require the approval of the NBU, which involves a comprehensive assessment to ensure compliance with local regulations.

NBU’s Commitment to Regulatory Compliance

The NBU emphasizes its support for competition and the advancement of financial technologies. However, they assert that all market participants must adhere to legislative and regulatory standards. The central bank stated, “We will act within our statutory prudential mandate, take necessary measures to ensure the stability of the Ukrainian banking system, and protect the interests of bank depositors and customers.”

Revolut’s Stance on Compliance

In response to the NBU’s statements, a Revolut spokesperson addressed these concerns, stating:

“Revolut prioritizes compliance with local regulations and has conducted a thorough evaluation before offering services to Ukrainian residents on a cross-border basis. Currently, we are providing services to Ukrainian residents through Revolut Bank UAB, which is supervised by both the European Central Bank and the Bank of Lithuania.”

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Connecting Ukrainian Families Worldwide

Revolut is committed to serving hundreds of thousands of Ukrainian customers in the European Union and beyond. The platform facilitates:

  • Instant, fee-free payments between Revolut users
  • Connections for Ukrainian families around the globe

The spokesperson added, “We have previously notified the Ukrainian regulator about our plans in Ukraine, and we will seek a local license in due course, working closely with the NBU to introduce even more innovative financial services to Ukrainians.”

For more information about the NBU’s regulations and banking licenses, visit their official site here.

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