Klarna Bank Fined $45.59 Million for Compliance Breaches

Klarna Bank has been fined 500 million Swedish crowns (approximately $45.59 million) by Sweden's Financial Supervisory Authority (FSA) for significant deficiencies in its anti-money laundering practices. The FSA's investigation, which took place from April 2021 to March 2022, revealed that Klarna failed to adequately assess how its products could be misused for money laundering or terrorist financing. Furthermore, the bank lacked proper procedures for customer due diligence, particularly related to its invoice product. While the violations were serious, the FSA did not consider them severe enough to revoke Klarna's banking authorization. Klarna has emphasized that the decision relates to rule interpretation rather than actual cases of money laundering. The company also noted its commitment to improving compliance processes in line with regulatory expectations.