The European Central Bank (ECB) has urged Revolut to enhance its financial crime controls and governance for its European operations. This development followed a review that highlighted issues similar to those affecting the fintech’s bid for a banking licence in the UK.

The ECB, which began directly supervising Revolut Holdings Europe UAB earlier this year, has been conducting a comprehensive evaluation of the unit. Sources with knowledge of the situation cited by Bloomberg indicate that the regulator has found several deficiencies in the company's control environment and is demanding improvements. This level of scrutiny is typical for lenders under ECB oversight, but the thoroughness of this review has been more rigorous for Revolut, partly due to its rapid growth in recent years.

The ECB declined to comment, while Revolut's representative stated that the company maintains strong governance and compliance practices globally and works closely with regulators. Revolut is also under review by UK financial authorities concerning similar issues. The company has been awaiting approval for a banking licence in the UK for over three years.

Strengthening controls against financial crime and money laundering can be costly due to the need for additional personnel and technology investments. Earlier this year, Revolut announced plans to significantly increase its workforce to improve its crime prevention measures. The importance of Revolut’s EU subsidiary Revolut’s EU subsidiary is a significant part of its operations, representing over 40% of its total revenue.

It is also the third-largest bank in Lithuania, with assets totalling EUR 12.1 billion at the end of the previous year according to Bloomberg. The ECB took over supervision of the Lithuanian unit from the Bank of Lithuania at the start of the year due to its significant size. European regulators are now engaged in detailed discussions with Revolut regarding its control and governance issues.

Revolut’s Lithuanian banking license allows it to provide services across the EU market of approximately 450 million people. The company has expanded its loan portfolio significantly, reaching GBP 528 million in 2023 by introducing credit cards and consumer loans in EU countries such as France, Germany, and Spain. .