Swedish buy-now-pay-later leader Klarna Group has been fined 500 million Swedish krona (£36 million) by the Scandinavian country’s financial regulator for breaching anti-money laundering and counter-terrorist financing guidelines.
An investigation conducted by the regulator found that Klarna’s general risk assessment practices have “significant deficiencies”.
The regulator said: “For example, it has not contained assessments relevant to how the bank’s products and services can be used for money laundering or terrorist financing.
“In addition, the bank has not had procedures and guidelines that capture all situations where it is necessary to conduct due diligence measures for customers using Klarna’s invoice product.
“Klarna has also not had a procedure for its model risk management.”
A spokesperson from Klarna said: “The decision… follows a routine review, initiated in 2022, of Klarna's compliance with anti-money laundering regulations—not actual cases of money laundering.
“We have maintained constructive dialogue throughout this process which is part of our commitment to a robust and secure financial environment."