The British fintech startup Revolut's activity in Lithuania might cause problems for the country, Antoni Mikulski, head of the Lithuania's Financial Crime Investigation Service (FNTT), has warned.
Lithuania's financial crime investigations chief says the British fintech company Revolut might “cause problems” by inviting too many non-residents into the country's financial system.
Antoni Mikulsi, the head of the Financial Crime Investigation Service (FNTT), made the comment to the Committee on Budget and Finance at the Lithuanian parliament, Seimas, on Wednesday.
“The arrival of Revolut, as a bank, here in Lithuania would in fact cause problems, because we don’t know how many non-resident [depositors] it will have and non-residents in a bank is a problem for the state. We don’t have so many of them now,” the FNTT chief said.
The Committee on Budget and Finance is looking into whether to allow using driver's license as a form of identification.
Vilius Pečkaitis, head of the FNTT's money laundering prevention board, believes there is a huge risk that individuals from regions where terrorist organizations operate might get access to Lithuania's financial system via the United Kingdom where he says getting a driver's license is relatively easy.
“By attracting all sorts of shady companies into the country, we risk giving people of dubious reputation access to our financial system,” Pečkaitis said.
He also warned that, unlike banks, fintech and e-payment companies “might shut their eyes” to their clients' citizenship.
Revolut is establishing a specialized bank in Lithuania and says it will begin operations by July.
Representatives of the central Bank of Lithuania said earlier that it assessed financial risks and challenges to national security before issuing a license to Revolut.