The Bank of Lithuania, which oversees Revolut’s European banking operations alongside the European Central Bank, identified “violations and shortcomings in the monitoring of business relationships and [transactions]”.

It stated these issues resulted in the bank failing at times to properly identify suspicious customer activity.

The €3.5m fine follows a smaller €70,000 fine in 2022 for late submission of financial statements.

Revolut said it is committed to high regulatory standards, cooperated with the Bank of Lithuania, and took immediate action to address the procedural failings, adding it continues to invest in “best in class controls”.

A source close to the company, which was valued recently at $45 billion, told the Financial Times that no confirmed money laundering instances were found and the focus was on improving existing controls.

They noted the fine represents less than 0.5 per cent of Revolut’s 2023 revenue, significantly below the potential maximum penalty.

The Bank of Lithuania acknowledged Revolut had admitted the failings and submitted an agreed plan for remediation.