2022-03-18
The Bank of Lithuania has carried out a targeted inspection of the specialised bank Revolut Bank UAB and the electronic money institution Revolut Payments UAB. The inspection was performed to examine the companies' compliance with the requirements of the Law on the Prevention of Money Laundering and Terrorist Financing.
It was found that during the period under inspection both the specialised bank and the electronic money institution had not included in their internal control procedures for the prevention of money laundering and terrorist financing all the risk factors set out in the legislation, which need to be assessed before onboarding. Also, the companies did not in all cases ensure that the legal requirement to obtain the approval of a senior manager to start or continue business relationships with clients at higher risk of money laundering and terrorist financing and with politically exposed persons was adequately implemented. The Bank of Lithuania issued warnings to both Revolut Bank UAB and Revolut Payments UAB for these breaches.
The Bank of Lithuania also identified breaches and deficiencies related to the collection of information regarding the purpose and intended nature of the clients’ business relations. For these breaches of the law, the Bank of Lithuania imposed a penalty of €50 thousand to Revolut Bank UAB and €150 thousand to Revolut Payments UAB and obligated to remedy the said breaches of legislation and other deficiencies found during the inspection no later than by 30 June 2022.
The companies are actively providing information to the Bank of Lithuania. They notified that they have taken action and have already fixed most of the breaches, and have developed a new risk assessment model for natural persons to prevent future breaches.