Klarna severely punished in Sweden

This is a decision that should not fix the affairs of Klarna. While the giant of the BNPL prepare Its entry into the United States to satisfy its long-standing ambitions, it has also suffered the lightnings of the financial regulator of its home country, Finansinspektionen (FI), responsible for the supervision and regulation of the financial system in Sweden. The latter accuses Klarna of failing to comply with the rules against money laundering and terrorist financing between 2021 and 2022.

FACTS

• Klarna has just received an administrative fine from the Swedish regulator Finansinspektionen.

• The latter blames the local BNPL giant, who has since been able to deploy its offer internationally, for failing to comply with the anti-money laundering rules for the period from 1 April 2021 to 31 March 2022.

• A thorough investigation conducted by Finansinspektionen would have enabled him to raise significant shortcomings. Klarna is accused of failing to assess how the bank's products and services could have been used for money laundering or terrorist financing.

• The amount of the administrative fine imposed on Klarna is SEK 500 million, or nearly EUR 43 million.

ISSUES

• Respecting consumer rights According to Finansinspektionen, the requirements for a general risk assessment and due diligence procedures and guidelines for clients would not have been met by Klarna.

• Confirm authorizations : The Swedish regulator temporises by stressing that a fine is an appropriate penalty given the financial situation of Klarna. The authorisations of the Swedish BNPL giant to continue its activities are not called into question and the violations do not require a warning according to Finansinspektionen.

PERSPECTIVE

• This decision taken by the Swedish financial regulator is a setback for Klarna, who has been seeking for several months now to redeem himself and rehabilitate himself in the eyes of the market and consumers.

• Accused in particular of participating in the increase in over-indebtedness, Klarna Signed The biggest losses in his history in 2022. Since then, the group has focused on combating risks of its historical model and participates in the deployment of various initiatives presented as more Responsible.

• A paying strategy that he permitted end 2023 to return to profitability. To see whether these new accusations, which concern previous activities, call into question the latter plans of development.

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