Lithuania’s central bank has fined Revolut, a major digital banking company from the UK, 3.5 million euros, which is around $3.83 million. This is the biggest fine the Lithuanian bank has ever given out. The reason? It failed to meet some important rules meant to stop money laundering.
Revolut is one of the most valuable tech companies in Britain and is known for offering fast and easy online banking. Even though it’s based in London, it uses a license from Lithuania to work within the European Union. That means the central banks in both Europe and Lithuania keep an eye on what it does.
This fine came after the Lithuanian central bank carried out a regular check on Revolut’s systems. During this inspection, they found that Revolut had problems with how it monitored some of its customers and the way it tracked certain transactions. These checks are important because they help stop people from using banks to hide money gained from illegal activities.
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The bank said that Revolut didn’t always spot or report transactions that looked suspicious. It didn’t say exactly what kinds of transactions were missed, but it was enough for the central bank to take serious action.
Revolut Responds to the Fine
After the fine was announced, Revolut released a statement. The company said that no actual money laundering was found. Instead, the problems were mostly about how the systems were working. The bank admitted that some of its procedures needed improvement and said that it had already started fixing them.
Revolut also said that it fully cooperated with the Lithuanian central bank during the entire process. They signed a settlement, which means both sides agreed on the facts and the fine, without going into a court battle. This kind of agreement is often used when a company wants to solve a problem quickly and move forward.
In the statement, Revolut added that it is dedicated to following all rules very carefully. The company promised that it took immediate steps to solve the problems once they were discovered.
Why the Fine Matters
The size of the fine was based on how serious the problem was and how much money Revolut’s European operations make. The fine was given to Revolut Holdings Europe, which is the part of the company that deals with rules and operations across the European Economic Area (EEA).
This event is important because Revolut is a big name in the fintech world. In August, it was valued at $45 billion through a sale of shares to new and existing investors. That makes it more valuable than some of the biggest banks in Europe.
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The fine shows how seriously Lithuania takes rules about money laundering. These rules are designed to make sure that financial systems aren’t used by criminals to hide stolen or illegal money. Regulators in Europe want all banks, especially digital ones like Revolut, to stay alert and act quickly when anything unusual happens.
This case also highlights the growing responsibilities for tech-based financial companies. Even though they offer fast and modern banking services, they are still expected to follow all the rules like traditional banks.
Revolut has now taken steps to improve its systems and meet the expectations set by Lithuania’s central bank. Even though the company said there was no actual crime involved, the problems were serious enough to lead to the largest fine the Lithuanian bank has ever handed out.
For now, the issue between Revolut and the Lithuanian authorities has been settled, with the fine paid and the improvements made. The central bank hopes this will lead to stronger systems in the future, although no specific future actions were discussed in the announcement.
