​Klarna Fined for Anti-Money Laundering Violations

​Sweden's Finansinspektionen, known as Financial Supervisory Authority (FSA), has completed an investigation into Klarna's adherence to anti-money laundering regulations covering the period from April 1, 2021, to March 31, 2022. The findings revealed that Klarna has breached several important rules concerning risk assessments and customer due diligence.

The investigation highlighted significant gaps in Klarna's general risk assessment processes. Notably, there was a lack of evaluation regarding how the bank's products and services might facilitate money laundering or terrorist financing. Additionally, the bank failed to implement adequate procedures and guidelines for due diligence, particularly concerning its invoice product.

Daniel Barr, the Director General at FSA, emphasized the necessity of compliance with anti-money laundering laws to mitigate the risk of criminal exploitation of financial operations. He stated that Klarna's shortcomings in risk assessment and due diligence procedures warranted regulatory intervention.

Despite these violations, FSA has determined that the issues do not merit a warning or the revocation of Klarna's authorization. However, the authority has opted to impose an administrative fine of SEK 500 million(45.60 million US dollars) along with a formal remark, reflecting the seriousness of the infractions in light of the firm's financial status.