Sweden's financial regulator, the Financial Supervisory Authority (FSA), has imposed a 500 million Swedish crowns ($46 million) fine on Klarna Bank following a review that uncovered major deficiencies in its anti-money laundering (AML) measures. The review covered Klarna’s operations for the year ending March 2022 and highlighted gaps in the company’s assessment of how its services might be exploited for money laundering or terrorist financing.
Despite the issues identified, the FSA emphasized that the violations were not serious enough to justify a formal warning or the withdrawal of Klarna's banking authorization. Erik Blommé, Director of Money Laundering Supervision at the FSA, commented, “This is not an injunction, so there is no specific timeframe, but we expect Klarna to address these deficiencies promptly.”
Klarna, which obtained its banking license in 2017, stated that the fine followed a routine compliance review and clarified that the issues raised were not linked to actual cases of money laundering. A Klarna spokesperson noted, “We have maintained constructive dialogue throughout this process as part of our commitment to creating a secure and compliant financial environment.”
Klarna, best known for its “buy now, pay later” services, is preparing for a public listing, having recently filed paperwork with the U.S. Securities and Exchange Commission for an initial public offering (IPO). While the fine may cast a shadow over its compliance record, it contrasts with the fate of fellow Swedish payment firm Trustly, which abandoned its $11 billion IPO in 2021 after receiving a formal warning from the FSA.
The FSA concluded its investigation and expects Klarna to implement remedial measures to strengthen its AML framework.
