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Italy's competition authority, the Autorità Garante della Concorrenza e del Mercato (AGCM), fined Revolut €11.5 million on April 2 for unfair commercial practices. The decision covers three separate violations involving investment services, payment account management, and the migration of customer accounts from Lithuanian to Italian IBANs. Revolut has said it will appeal in the Italian courts.
The AGCM's jurisdiction is consumer protection, not banking supervision. This is not a fine from the Bank of Italy or from the European Central Bank. It is an enforcement action under the Italian Consumer Code — Articles 20, 21, 22, 24 and 25 — covering commercial conduct toward retail customers. That distinction matters for how the decision should be read.
The Three Violations
The first fine, €5 million, was imposed on Revolut Securities Europe UAB and Revolut Group Holdings for failing to clearly disclose, from the first point of contact with clients, the additional costs and limitations involved in commission-free investments. The AGCM focused specifically on fractional shares, which involve material differences from full shares in terms of risk, shareholder rights, and transferability — differences the regulator found were not adequately communicated.
The second fine, also €5 million, was imposed on Revolut Group Holdings and Revolut Bank UAB for aggressive and opaque practices in the management of payment account suspensions and restrictions. The AGCM found that Revolut failed to provide adequate pre-contractual information, adequate notice before restrictions were applied, and adequate assistance or recourse once an account had been restricted. The regulator explicitly noted that blocking access to funds, sometimes for extended periods, impairs customers' ability to exercise contractual rights and meet urgent financial needs.
The third fine, €1.5 million, was imposed on Revolut Group Holdings and Revolut Bank UAB for failing to provide clear and exhaustive information on the requirements and timeline for obtaining an Italian IBAN — beginning with the letters IT — rather than the Lithuanian IBAN customers had previously held.
Why the Smallest Fine Is the Most Significant
The IBAN migration charge is the smallest of the three. It is also the one that speaks most directly to the structural question that has defined Revolut's European expansion model.
Revolut operates across Europe through Revolut Bank UAB, its Lithuanian banking entity, licensed by the Bank of Lithuania and supervised by the European Central Bank. Under European single market rules, a bank licensed in one member state can passport its services across the EU without requiring separate banking licences in each country.
Revolut has used this structure to serve customers across the continent, including Italy, while maintaining its primary regulatory relationship with Lithuanian and European supervisors.
The practical consequence of that model is that Italian customers have historically held Lithuanian IBANs — account identifiers beginning with LT rather than IT. As Revolut has worked to migrate its Italian customer base to Italian branch IBANs, it has been conducting exactly the kind of complex regulatory transition that a passported operation requires when it seeks to deepen its local presence. The AGCM found that Revolut did not explain that transition clearly enough.
As FinTech Weekly set out in its analysis of European fintech capital strategy, the distinction between operating under a passported licence and holding a local banking presence is not purely regulatory. It has direct commercial consequences — in customer trust, in the depth of local relationships, and, as this enforcement action illustrates, in the clarity of obligations toward retail customers in each market.
Revolut received its UK full banking licence from the Prudential Regulation Authority in March 2026. That licence is relevant to its UK operations. It does not extend to Italy, where Revolut continues to operate through its Lithuanian entity.
Revolut's Response
Revolut said it strongly disagrees with the AGCM's findings and will appeal in the Italian courts. A spokesperson said the company was confident its communications were clear and transparent and that protecting its customers was its absolute priority.
Revolut also said account reviews of the kind cited in the second violation are mandatory and necessary to protect customers and the integrity of the financial system, and that its transition to Italian bank accounts was conducted in accordance with local banking protocols.
The appeal means the fines are not yet final. Italian administrative enforcement decisions of this kind are subject to judicial review, and outcomes vary.
Editor's note: We are committed to accuracy. If you spot an error or have additional information, please email [email protected].
