The Lithuanian central bank, which oversees Revolut’s European banking operations alongside the European Central Bank, identified “violations and shortcomings in the monitoring of business relationships and [transactions]”. It stated these issues resulted in the bank failing at times to properly identify suspicious customer activity. This follows a smaller €70,000 (c. £60,000) fine in 2022 for late submission of financial statements.

Revolut, which gained its European banking licence via Lithuania in 2021, has faced increasing scrutiny over its internal controls as it has grown rapidly. Its application for a UK banking licence stalled for over three years, partly due to auditor concerns in 2023 regarding potential misstatements in its 2021 revenue linked to IT system design. Revolut recently received a restricted UK licence and is expected to achieve full operational status later this year.

The fintech stated it is committed to high regulatory standards, cooperated with the Bank of Lithuania, and took immediate action to address the procedural failings, adding it continues to invest in “best in class controls”. A source close to the company, which was valued recently at $45 billion (c. £35bn), told the Financial Times that no confirmed money laundering instances were found and the focus was on improving existing controls. They noted the fine represents less than 0.5% of 2023 revenue, significantly below the potential maximum penalty.

The Bank of Lithuania acknowledged Revolut had admitted the failings and submitted an agreed plan for remediation.

The penalty comes amid wider regulatory concern over the adequacy of controls at fast-growing digital banks. The Financial Conduct Authority has previously highlighted such concerns, and fined competitor Starling Bank £29m for financial crime failings related to its financial sanctions screening.