Klarna Faces Regulatory Scrutiny Over AML Compliance

A regulatory review of Klarna’s practices between April 2021 and March 2022 uncovered multiple breaches of key anti-money laundering (AML) rules.

These included shortcomings in the company’s general risk assessments and deficiencies in customer due diligence protocols.

Authorities found that Klarna’s risk assessment processes failed to adequately address how its services might be exploited for money laundering or terrorist financing. Additionally, the company lacked comprehensive guidelines to determine when customer due diligence should be conducted for its invoice product users.

Daniel Barr, Director General of the Swedish Financial Supervisory Authority (FI), emphasized the importance of strict adherence to AML regulations to prevent criminal misuse of financial systems. He stated that Klarna’s lapses in risk assessments and due diligence warranted intervention, though not severe enough to justify a warning or revocation of its license.

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Sweden’s major banks have faced scrutiny over AML compliance in recent years, with SEB receiving a significant fine of 4 billion kronor. Klarna, however, highlighted that no evidence of its services being misused for money laundering was found during the investigation. A spokesperson noted that the company had engaged in constructive dialogue with regulators to reinforce its commitment to secure financial practices.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.