Lithuanian authorities highlight Revolut's anti-money laundering challenges

Lithuanian financial authorities have indicated that the fintech company Revolut is encountering significant challenges in its anti-money laundering (AML) efforts. Vaidas Cibas, director of the Bank of Lithuania's Financial Market Supervision Department, stated that the volume of suspicious financial operation reports received from Revolut suggests these difficulties are apparent.

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The fact that Revolut has problems with money laundering prevention is probably evident from our actions. I will remind you that the Bank of Lithuania imposed a measure of influence and fined Revolut about a year ago. This also indicates that the bank should improve in this area and pay more attention to it.

"The fact that Revolut has problems with money laundering prevention is probably evident from our actions. I will remind you that the Bank of Lithuania imposed a measure of influence and fined Revolut about a year ago. This also indicates that the bank should improve in this area and pay more attention to it," Cibas told the Seimas Budget and Finance Committee.

Cibas clarified that the central bank does not apply exceptional conditions to any financial market participants, including Revolut, treating all entities equally. However, entities with riskier clients naturally attract more attention. Direct supervision of Revolut is currently handled by the European Central Bank (ECB), which took over this function from the Bank of Lithuania approximately a year ago. Future supervision might fall under a newly established European Anti-Money Laundering Authority (AMLA), though its direct oversight scope remains unclear.

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No exceptions are made, and all are treated equally. Financial market participants with riskier clients receive more attention.

Rolandas Kiškis, director of the Financial Crime Investigation Service (FNTT), noted that Revolut is the largest provider of suspicious operation reports in Lithuania, accounting for about 80% of the approximately 100,000 reports received annually. He suggested this high volume might not necessarily be negative, but could signify increased investment and focus on AML prevention. "We see that these 80,000 reports we receive are generated by a robot. It profiles and sends practically everything if it sees even the slightest risk. We think this is a certain indicator that they are paying attention and investing in it," Kiškis said. He also mentioned that cooperation with the bank has strengthened, and Revolut is significantly investing in automated AML systems, primarily related to fraud affecting private individuals.

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We see that these 80,000 reports we receive are generated by a robot. It profiles and sends practically everything if it sees even the slightest risk. We think this is a certain indicator that they are paying attention and investing in it.