The Ukrainian National Bank (NBU) has stressed that Revolut needs a licence to operate in Ukraine, with the central bank confirming it has not yet granted any licence or permit to the FinTech company.

The central bank’s comments come after Revolut announced last month that it would enter the Ukrainian banking market for residents in the country through its banking arm Revolut Bank UAB.

In the statement, Revolut said Ukrainian residents could open a European Revolut account and access services such as fee-free P2P transfers, access to foreign exchange, and remittance capabilities in more than thirty currencies.

However, the NBU stated that Ukrainian laws stipulate that the only permissible forms of conducting banking business in Ukraine are to establish a branch of a foreign bank or to obtain a banking licence issued by Ukraine, with both options requiring authorisation by the NBU.

“When considering an application to open a branch or obtain a license, the NBU conducts a comprehensive assessment of the founder’s business reputation, financial standing, and proposed business model,” it added.

Revolut Bank UAB is a foreign bank based in Lithuania that provides financial services under a licence that allows it to operate in EU countries. It forms a key part of Revolut’s operations in Europe.

It was formed after merging with Revolut Payments UAB in 2022, streamlining their services under one entity.

The bank stated that matters relating to the launch of operations by a foreign operator in the Ukrainian banking market are also subject to consultation with the banking supervisory authority of the country where the operator is based. The bank warned consumers that Ukrainian legislation on consumer protection in financial services and on the deposit guarantee system does not apply to Revolut customers.

In January, Revolut launched in-app calls to enable customers to identify impersonation scams and make communication between customer support and account holders safer and more reliable.

The move came after Revolut’s fraud practices were brought under the spotlight last October when a BBC Panorama investigation found that the neobank was named in more fraud reports than any other UK bank over a 12-month period.

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