Revolut Bank fined €3.5m for breaching anti-money laundering rules

In April 2025, the Bank of Lithuania imposed a €3.5 million fine on Revolut, its largest AML-related penalty to date, for systemic failures in monitoring business relationships and transactions. ⚠️

“The Bank of Lithuania carried out a scheduled inspection of Revolut Bank, during which it found irregularities and deficiencies in the area of monitoring business relations and operations,” stated the Central Bank of Lithuania.

Lithuanian regulators reportedly imposed the highest regulatory penalty on Revolut for “violations and deficiencies” in its operational systems.

Revolut's rapid ascent as a global fintech leader has been marred by persistent anti-money laundering (AML) deficiencies and fraud-related challenges, prompting regulatory action and raising questions about its ability to balance growth with compliance. The company’s struggles highlight broader tensions in the digital banking sector, where scaling operations often outpaces the maturation of risk controls.

Regulatory Penalties and AML Shortcomings

Key findings included:

Inadequate transaction monitoring leading to missed suspicious activities

Procedural gaps in customer due diligence and internal controls

No confirmed money laundering instances, but regulators emphasized the potential risks of weak oversight

This followed a 2022 €70,000 fine for delayed financial reporting, underscoring recurring compliance issues. The €3.5 million penalty, though less than 1% of Revolut’s 2023 revenue, reflects regulators’ intolerance for procedural lapses, even without proven financial crime.

Fraud reports and Customer impact

Revolut faced also scrutiny in 2023 after a BBC Panorama investigation revealed:

• 9,793 fraud reports filed with Action Fraud, the highest among UK banks
• 3,500 fraud-related complaints to the Financial Ombudsman, surpassing traditional banks
• A business customer losing £165,000 in an hour before account freezing

Former employees cited a “high-pressure environment” and “insatiable appetite for growth” as contributors to gaps in fraud prevention

. While Revolut claims a 20% reduction in fraudulent transactions in 2023, critics argue its controls lag behind customer protection needs.

The Compliance Imperative

Revolut’s regulatory history, including a 2019 FCA probe into AML systems, reveals a pattern of reactive remediation rather than proactive risk management. Key lessons for fintechs include:

• Investing in scalable controls: Automated transaction monitoring and AI-driven anomaly detection are critical as user bases expand.
• Balancing growth and governance: Rapid scaling often strains compliance frameworks, necessitating parallel investments in oversight
• Transparent reporting: Delays in financial disclosures erode regulatory trust

Revolut has responded by hiring Financial Crime Compliance Managers to strengthen oversight and adopting “best-in-class controls”, but sustained progress requires cultural shifts.

Building an AML culture and educating teams

A robust compliance framework hinges on employee education and organizational culture:

• Training gaps: Front-line staff must recognize red flags and escalate suspicious activity

The BBC’s findings suggest Revolut’s growth-centric culture may deprioritse such training.

Leadership accountability: Senior management must champion compliance as a core value, not a checkbox exercise

Technology-human synergy: While Revolut leverages AI for scam alerts, human expertise remains vital for interpreting complex risks

As Aurore Versele, Revolut’s Money-Laundering Reporting Officer, notes, AML legislation should drive “products clients enjoy using”, blending regulatory adherence with user experience.

Revolut’s challenges underscore a critical juncture for fintechs: innovation must coexist with compliance. For Revolut, addressing AML shortcomings and fraud risks demands not only better systems but a cultural reset - one that prioritizes employee education, transparent governance, and accountability at all levels. As regulators intensify scrutiny, the fintech sector must prove that agility and security are not mutually exclusive.

‍