Lithuania’s central bank has fined Revolut, a British fintech company, 3.5 million euros ($3.83 million) for failures in money-laundering prevention.

The fine followed a routine inspection that found issues with Revolut’s monitoring of business relationships and operations. These issues led to the company failing to properly identify suspicious transactions, according to the central bank’s statement, Reuters reported.

Lithuania Issues Record Fine to Revolut

Revolut has stated that the investigation did not confirm any money laundering and that the findings were related to improvements in existing controls. The company emphasized its focus on regulatory compliance and has cooperated with the Lithuanian central bank to address the issues.

The fine, the largest ever issued by the Lithuanian central bank, reflects the severity of the violations and the revenues of Revolut Holdings Europe, the company’s holding entity for regulated operations in the European Economic Area. Revolut was valued at $45 billion in August and reported a record pretax profit of 438 million pounds ($559.5 million) in 2023.

You may find it interesting at FinanceMagnates.com: Revolut’s Evolution—From Fintech Maverick a UK Banking Behemoth?

Revolut and Visa Oppose UK’s Proposed Interchange Fee Cap

Revolut, in collaboration with Visa, is challenging the UK Payment Systems Regulator (PSR) over proposed caps on interchange fees. The companies argue that these caps would harm competition and hinder innovation within the fintech sector.

Both firms contend that the PSR’s decision is unnecessary and could have negative effects on consumers and businesses. Revolut claims the regulator’s move could force banks to cut rewards programs or introduce new fees to compensate, ultimately impacting consumers. Visa also warns that limiting interchange fee revenue could stifle competition and hinder fintech growth.

This article was written by Tareq Sikder at www.financemagnates.com.FinTechRead More

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