Revolut has not obtained a banking license in Ukraine — NBU

Revolut has not obtained a banking license in Ukraine — NBU

The National Bank of Ukraine (NBU) stated that despite the decision to enter the Ukrainian financial services market, the British neobank Revolut has not yet obtained a license for banking activities. Moreover, the NBU assured that no applications from the company have been submitted to the regulator, which means that clients will not be provided with protection and guarantees on deposits. Revolut itself responds that they have informed the regulator about their plans and are planning to obtain a license.

As reported by the NBU on February 27, Revolut Bank UAB is a foreign bank registered in Lithuania, and the license granted to it allows it to operate in European Union countries, but not in Ukraine. For this, the financial company must either establish a branch in Ukraine or obtain a banking license, receiving the relevant permission from the NBU.

When considering an application for opening a branch or obtaining a license, the NBU comprehensively assesses the founder’s business reputation, financial condition, and proposed business model. Before the start of operations of a foreign company in the Ukrainian banking market, the NBU may consult with the banking supervision authorities of the company’s country of origin.

"To date, Revolut Bank UAB has not received any licenses or permits from the National Bank of Ukraine, has not submitted any relevant applications, and is not undergoing the licensing procedure. We support open competition and the development of financial technologies, but we deem it necessary to emphasize that all market participants must operate within legislative and regulatory requirements," the NBU stated.

Since Revolut operates outside the Ukrainian legal framework, its Ukrainian clients do not fall under the protection of financial services consumer rights and deposit guarantee system. In light of this, the NBU warned about its readiness to act "within the defined legislative prudential mandate" and to take "all necessary measures aimed at ensuring the stability of Ukraine’s banking system, responding to legal violations to protect the interests of depositors and bank clients."

On February 28, Revolut provided its stance on the issue in a comment to dev.ua. They assured that they "prioritize compliance with local regulatory requirements" and clarified that they have already communicated with the NBU regarding the license.

"For now, Revolut is providing services to Ukrainian clients through Revolut Bank UAB, which is based in Lithuania and supervised by the European Central Bank and the Bank of Lithuania. We only offer accounts in the EU and do not plan to open Ukrainian accounts without additional permission. Revolut already provides services to hundreds of thousands of Ukrainian clients in the European Union and beyond. ... We previously informed the Ukrainian regulator about our plans in Ukraine and ultimately aim to obtain a Ukrainian banking license, working closely with the NBU," the company stated.