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British fintech giant Revolut, one of the world’s most valuable start-ups, has been fined €3.5 million by Lithuania’s central bank for failing to properly monitor suspicious transactions and protect against money laundering.
Revolut, which is licensed in Lithuania to operate across the EU — including Cyprus — came under scrutiny after a routine inspection uncovered serious lapses in how it tracks and flags potentially shady activity. While no actual money laundering was confirmed, Lithuania’s central bank said Revolut wasn’t always effective in spotting red flags.
Cypriots are among the millions of Revolut users in Europe who rely on the app for everything from paying bills to transferring money abroad.
The penalty is the largest ever handed out by the Bank of Lithuania and reflects both the seriousness of the violations and the financial strength of Revolut’s EU business.
What Went Wrong?
According to the central bank, the issue lies with weaknesses in Revolut’s internal controls, particularly when it comes to monitoring customer transactions and business relationships. These kinds of checks are a key part of how financial institutions, whether they’re big banks or trendy fintech apps, help fight financial crime.
Revolut responded by saying it has already taken steps to fix the problems and stressed that the case didn’t involve any confirmed wrongdoing by customers. “We cooperated fully with the Lithuanian central bank and acted quickly to strengthen our systems,” the company said in a statement.
Why It Matters for Cyprus
Cypriots are among the millions of Revolut users in Europe who rely on the app for everything from paying bills to transferring money abroad. The platform has become especially popular for its low fees and convenience, offering an alternative to traditional banking.
But as Revolut’s popularity grows, so does the pressure to play by the rules. With tighter EU-wide regulations around money laundering, the spotlight is on fintech firms to ensure they’re not becoming easy targets for illicit activity.
Revolut, valued at around $45 billion, has made headlines not only for its rapid growth but also for its record £438 million pre-tax profit in 2023. But this fine is a reminder that even digital disruptors need to be held to the same standards as traditional financial institutions.
*With information from Reuters
