(Bloomberg) -- Klarna Bank AB received widespread criticism from the Swedish Financial Supervisory Authority for not doing enough to combat money laundering and terrorist financing, Dagens Industri reported.
According to a preliminary assessment, the lender has violated several regulations, the authority said in a July letter to Klarna Chief Executive Officer Sebastian Siemiatkowski, DI said.
The heavily redacted letter obtained by the newspaper includes criticism that covers at least six different provisions in the Money Laundering Act, including general risk assessment, risk assessment of customers and know your customer-rules. It also focuses on the requirements on enhanced customer awareness measures if a customer is deemed to be associated with a high risk of money laundering.
The criticism comes as Klarna is gearing up for an initial public offering next year after revenue soared 27% in the first half of 2024. Klarna declined to comment to Dagens Industri on how the FSA’s assessment might affect the timeline.
Klarna declined to comment when contacted by Bloomberg News. “We will communicate our decision when we have made one,” an FSA spokesperson said, declining to provide more details.
The FSA will examine whether there is reason to intervene against Klarna and how that should be done, according to the letter, DI said.
(Corrects second paragraph to show FSA assessment is preliminary, adds no comment from Klarna in fifth paragraph.)
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