Ukraine's central bank says that Revolut does not have a licence to operate in the country despite the London-based fintech's announcement earlier this month that residents can now open accounts.
In Early February, Revolut issued a press release declaring: "Starting today, Ukrainian residents will be able to seamlessly open a European Revolut account and experience an array of innovative products".
In response, the National Bank of Ukraine (NBU) has put out a statement confirming: "To date, Revolut Bank UAB has not received any licenses or permits from the National Bank of Ukraine, has not submitted relevant applications, and is not undergoing the business licensing procedure."
The central bank notes that Revolut Bank UAB is a Lithuanian-based foreign bank that provides financial services under a license that allows it to operate in European Union countries.
Ukraine law requires firms wanting to enter the market to either set up a foreign bank’s branch or obtain a Ukrainian-issued banking license. Both of these options requires the NBU’s permission and can only be secured after a comprehensive assessment.
"We support open competition and the development of financial technologies, but we also deem it necessary to stress that all market participants must meet legislative and regulatory requirements," says the NBU.
The central bank "will act within its statutory prudential mandate, take every measure necessary to ensure the stability of the Ukrainian banking system, respond to violations of the law, and protect the interests of bank depositors and customers".
In response, a Revolut spokesperson tells Finextra: "Revolut prioritises compliance with local regulations and conducted a thorough evaluation before offering services to Ukrainian residents on a cross-border basis. Revolut is currently providing services to Ukrainian residents through Revolut Bank UAB, based in Lithuania and supervised by the European Central Bank and the Bank of Lithuania. We offer EU accounts only and we are not planning to open Ukrainian accounts without further authorisation.
"Revolut is providing services to hundreds of thousands Ukrainian customers in the European Union and beyond. We offer instant fee-free payments between Revolut users that connect Ukrainian families around the world.
"We have previously notified the Ukrainian regulator about our plans in Ukraine and we will seek a local licence in due course, and will work closely with the NBU to bring even more innovative financial services to Ukrainians."