Swedish regulator issues Klarna with administrative fine of around $46m
Klarna has been handed an administrative fine of SEK 500 million (around $46 million) by Finansinspektionen (FI), Sweden’s Financial Supervisory Authority, for “violating the anti-money laundering regulations”.
Klarna fined around $46m by Swedish regulator
The regulator says it investigated Klarna’s compliance with anti-money laundering regulations during the period between 1 April 2021 and 31 March 2022, adding that the investigation found Klarna had been “in violation of several key rules”.
The regulator says: “Klarna’s general risk assessment has had significant deficiencies; for example, it has not contained any assessments of how the bank’s products and services could be used for money laundering or terrorist financing.
“In addition, the bank has not had procedures and guidelines that capture all situations for when due diligence measures should be taken for customers that use Klarna’s invoice product,” the regulator continues.
The FI concludes: “Given the violations in question and the firm’s financial position, FI has decided to issue the firm a remark and an administrative fine of SEK 500 million.”
FI director general Daniel Barr comments: “The anti-money laundering regulations must be followed. It is important to counteract the risk that the firm’s operations could be used by criminals.”
“Our investigation shows that Klarna has not followed the requirements on, among other things, a general risk assessment and procedures and guidelines for due diligence measures,” Barr adds.
Klarna’s statement
In a statement posted to its website, Klarna says: “It is important to emphasise that the decision applies precisely to rule interpretation and application and not to actual cases of money laundering. The investigation began in April 2022, and we have since had a constructive dialogue with the authority.”
The company continues: “When the Financial Supervisory Authority began its investigation into Klarna’s work against money laundering and the financing of terrorism, we were the largest Swedish bank that had not been investigated so far, apart from state-owned SBAB. The industry navigates a complex set of regulations, which is also demonstrated by the fact that all other major banks have received reprimands within the framework of the money laundering regulations. We continue to develop and strengthen our processes together with the Financial Supervisory Authority and other stakeholders.
“Together with authorities and the rest of the industry, we have a joint mission to combat money laundering and the financing of terrorism. We take this responsibility very seriously and will continue to do our utmost to contribute to a strong and resilient financial sector. We look forward to continued constructive cooperation with the Financial Supervisory Authority and welcome dialogue with relevant parties to make it easier for all players in the market.”
The news comes after Klarna revealed last month that it has submitted an application to the US Securities and Exchange Commission (SEC) for the “proposed initial public offering of its ordinary shares”.
