Lithuania Fines Revolut €3.5M for Money Laundering Failures

Lithuanias central bank has handed down a staggering €3.5 million ($3.83 million) fine to Revolut, the British fintech powerhouse, for weaknesses in its efforts to prevent money laundering. This penalty, the biggest ever from the bank, came after a standard review exposed serious flaws in how Revolut tracked its business dealings and activities.

The central bank pointed out that these missteps left Revolut unable to spot questionable transactions effectively. In response, Revolut stressed that the probe didnt uncover any real “money laundering” cases. Rather, it highlighted spots where their current safeguards could use some work. The firm insisted it takes regulatory rules seriously and has teamed up with Lithuanian officials to fix the problems.

The size of the fine mirrors both the weight of the slip-ups and Revolut‘s hefty footprint in the European Economic Area (EEA). Revolut Holdings Europe, which handles the company’s regulated operations in the region, raked in a record £438 million ($559.5 million) in pretax profit in 2023. With a valuation hitting $45 billion in August, Revolut stands tall as a major force in the worldwide fintech scene.

On another front, Revolut has joined forces with Visa to push back against the UK Payment Systems Regulator‘s (PSR) plan to cap interchange fees. The duo argues that such limits would choke competition and slow down fresh ideas in the fintech world. They warn that the PSR’s move might force banks to trim perks like rewards or tack on new charges, hitting customers in the wallet. Visa added that slashing interchange fee income could stunt growth and weaken the markets competitive edge.

This fine puts Revolut at a crossroads, juggling regulatory hurdles while holding its ground as a top fintech contender. How it handles these challenges could steer its path forward and define its standing in the tightly controlled financial landscape.