Klarna fined $50 million over AML violations

The Sweden’s Financial Supervisory Authority (FI) is issuing Klarna Bank AB (Klarna) a remark and an administrative fine of SEK 500 million ($50 million) for violating the anti-money laundering regulations, according to the press release.

FI has investigated during the period 1 April 2021–31 March 2022 Klarna’s compliance with the anti-money laundering regulations, including the requirements on a general risk assessment and customer due diligence procedures and guidelines.

„The investigation shows that Klarna has been in violation of several key rules. 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.” – FI explained.

„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. There are therefore grounds on which to intervene against the bank,” says Daniel Barr – Director General at FI.

The violations are not of such a nature that there are grounds on which to issue a warning to Klarna or withdraw its authorisation. 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.