Sweden's Financial Supervisory Authority (FI) has imposed a $50 million fine on Klarna for deficiencies in its anti-money laundering (AML) compliance.

An investigation covering April 2021 to March 2022 revealed significant shortcomings in the BNPL giant's general risk assessment and customer due diligence procedures. FI highlighted Klarna's failure to assess how its products and services might facilitate money laundering or terrorist financing. Moreover, the company lacked comprehensive guidelines for implementing due diligence measures for customers using its invoice product. FI Director General Daniel Barr stressed the importance of adherence to AML regulations to mitigate the risk of criminal exploitation, stating that Klarna's failures warranted regulatory intervention.

Despite the violations, the scale of Klarna's issues did not justify an official warning or revocation of its banking license. Klarna noted that the investigation did not uncover instances of its products being used for illicit purposes and emphasized its commitment to a secure financial environment. This penalty follows a broader trend of scrutiny on Sweden's banking sector, with major institutions like SEB previously fined for similar compliance lapses. Klarna remains one of the few large Swedish banks not to face investigation until now, underscoring the heightened regulatory focus on money laundering controls across the industry.