In a significant regulatory action, the Bank of Lithuania has imposed a €3.5 million ($3.8 million) fine on British fintech company Revolut for deficiencies in its anti-money laundering (AML) procedures. This penalty marks the largest ever issued by the central bank and underscores the increasing scrutiny fintech firms face in maintaining robust compliance frameworks.
Details of the Violation
The fine follows a routine inspection by the Bank of Lithuania, which identified shortcomings in Revolut’s monitoring of business relationships and operations. These lapses led to the company’s failure to consistently identify suspicious transactions. While the investigation did not uncover any confirmed instances of money laundering, the central bank emphasized the need for improvements in Revolut’s existing AML controls.
Revolut, operating in the European Union under a Lithuanian license, has acknowledged the deficiencies and taken immediate corrective actions. The company reported the violation to the regulator, rectified the issues within a few days, and implemented enhanced controls to prevent future occurrences. Revolut’s swift response and cooperation with authorities were considered mitigating factors in the penalty’s determination.
Context and Implications
Revolut, valued at $45 billion, has been a prominent player in the fintech sector, offering a range of financial services across Europe. The Bank of Lithuania’s decision reflects the seriousness with which regulators are treating compliance failures, particularly concerning financial crime prevention. The fine’s size was influenced by the nature, duration, and scope of the violations, as well as Revolut Holdings Europe’s revenue.
This action is part of a broader trend where financial regulators are intensifying oversight of fintech companies. For instance, in 2023, the Bank of Lithuania fined TransferGo €310,000 for similar AML deficiencies, highlighting the regulator’s commitment to enforcing stringent compliance standards across the sector.
Revolut’s Commitment to Compliance
In response to the fine, Revolut reiterated its commitment to the highest standards of regulatory compliance. A company spokesperson stated, “We continue to invest to ensure we have best-in-class controls in the fight against financial crime.” The company has also been cooperating with the Bank of Lithuania and the European Central Bank, which began direct supervision of Revolut Holdings Europe UAB and its subsidiary, Revolut Bank, in January 2025.
Conclusion
The €3.5 million fine serves as a stern reminder to fintech companies operating in Europe of the critical importance of maintaining robust anti-money laundering controls. As regulatory bodies continue to scrutinize financial institutions, adherence to compliance standards will be essential for sustaining trust and operational viability in the competitive fintech landscape.
