The Italian competition authority has fined Revolut €11.5 million for spreading misleading information about investment services and deceptive practices in the management of its banking offering.
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Revolut says it will appeal the decision in court, with the firm telling Reuters in a statement: “We remain confident that our communications are clear and transparent. Protecting our millions of customers is our absolute priority.”
The regulator fined Revolut Securities Europe UAB and Revolut Group Holdings €5 million for failing “to clearly disclose, from the very first point of contact with clients, the additional costs and limitations involved in commission-free investments”.
The two unite were hit with another €5 million penalty for “aggressive practices in managing the suspension, limitation and blocking of payment accounts, while omitting (or failing to clearly provide) key information on the relevant terms and procedures”.
Finally, the $75 billion fintech giant faces a €1.5 million fine for not providing “clear and exhaustive” information on the requirements and timeframe for obtaining an Italian IBAN instead of a Lithuanian IBAN.
Says a Revolut spokesperson: “The transition to Italian IBANs followed rigorous local banking protocols. We are required by law to verify customer documentation and eligibility to ensure a secure, compliant, and orderly transition to the local entity.”
Last month Revolut finally secured a full banking licence in the UK after a years-long process that saw it face intense regulatory scrutiny about the firm’s ability to keep pace with compliance issues as it scaled its operations in other markets.
The fintech has had previous brushes with regulators, including last year when it was fined €3.5 million by the central bank of Lithuania for deficiencies in its anti-money laundering controls.