“The payments reset no one saw coming,” is the marketing headline of the Lithuanian paytech Kevin. In a sense, this seems to be a self-fulfilling prophecy. The Bank of Lithuania has taken bold regulatory action against Kevin EU, UAB, suspending its ability to onboard new customers. This decision comes in light of Kevin‘s repeated failures to meet essential regulatory requirements, particularly in the areas of financial transparency, capital adequacy, and internal controls.
Regulatory Non-Compliance Issues
Kevin (website) has been identified as being almost four months overdue in submitting its audited annual accounts. The company has consistently postponed the submission deadline and has failed to provide auditors with the necessary information to complete the audit. This lack of compliance with capital adequacy requirements and failure to ensure adequate internal control has prompted serious concerns about the company’s operational stability and the safety of consumer interests.
Regulatory Actions Imposed
In response to these critical breaches, the Bank of Lithuania has appointed a temporary representative, the insolvency agency Valnetas (website), to supervise Kevin‘s activities. This independent supervisor is tasked with overseeing the company’s operations and ensuring that Kevin addresses its compliance issues and aligns with regulatory standards. Additionally, specific business restrictions have been applied to safeguard the interests of consumers and ensure the sound operation of the company.
Go to the Kevin profile on PayRate42.
Implications for Kevin
The halt on new customer onboarding represents a substantial operational and reputational challenge for Kevin. To regain the trust of both regulators and customers, the company must prioritize rectifying its regulatory shortcomings. This incident underscores the critical importance of regulatory adherence in the financial technology sector, where compliance failures can result in severe operational disruptions.
