Digital bank Revolut was fined €70,000 at the end of 2022 for failing to submit audited annual financial statements to the Bank of Lithuania in due time in violation of Lithuanian laws on financial institutions.
The regulator wrote in a public statement that one of Revolut’s European subsidiaries, Revolut Payments UAB, had “failed to approve the annual financial statements and make a decision on the distribution of profit (loss) within the set deadlines”.
The fast-growing financial technology and banking company has also yet to file audited accounts for two key holding companies in Britain after “unacceptably high” risks of material misstatement were identified by British regulators last year.
Rūta Medaiskytė of the Bank of Lithuania told the publication that while Revolut companies established in Lithuania have provided audited reports for 2021 and 2022, the fine has been imposed due to “failure to provide these reports within the legal deadline”.
The Bank of Lithuania also revealed late last year that Revolut Payments failed to follow rules around the handling of customer complaints including cases of “incomplete, unsubstantiated answers and non-respect of the deadlines”.
“The Bank of Lithuania obliged [Revolut Bank UAB] to ensure that all customer complaints received through the chat box in the bank’s app are registered, processed and responded to as required by law, and that customers are duly informed,” the regulator said.
The bank, which was supposed to release the accounts earlier in September, had deferred the release of the statement to December 31, 2022.
Since September CEO Nikolay Storonsky has been describing Revolut as “profitable”, based on its yet-to-be-filed 2021 accounts, however, the exact figures that Storonsky is referring to are still not released.
Revolut will release its delayed financial statement for the fiscal year 2021 in 2023. Michael Bodansky, the Head of Corporate Communications at Revolut, confirmed this.
Despite its popularity in Ireland, a Peopl Insurance survey in August 2022 found that 35pc of the adults surveyed have low levels of trust in fintech providers such as Revolut, N26 and Bunq.