Swedish Financial Supervisory Agency The FSA has reportedly criticised KlarnaThe company has had its risk assessment revised, finding that it is not taking sufficient measures to combat money laundering and terrorist financing.
In a letter to Klarna’s CEO, the FSA said: Sebastian Szymiatkowski A preliminary investigation found that the company violated regulations covering general risk assessments, customer risk assessments, know-your-customer rules and measures regarding customers at high risk of money laundering, Bloomberg reported. Reported Monday (September 9th), article According to Swedish business newspaper Dagens Industri.
Bloomberg reported that Dagens Industri’s report was based on a heavily redacted copy of the letter.
Regulators will now consider whether and what action should be taken, according to the report.
Asked about the Bloomberg article, the FSA reportedly said: “We will communicate a decision once it has been made.”
Klarna did not immediately respond to PYMNTS’ request for comment.
The report comes as the Swedish buy now, pay later (BNPL) company Initial public offering The company aims for a valuation of approximately $20 billion through its IPO.
Klarna, which announced its half-year financial results on August 27th, Revenue Profits rose 27% in the first half of the year. Adjusted profit rose to $66 million, compared with an adjusted loss of $45 million for the same period in 2023.
“Klarna’s vast global network continues to expand rapidly, engaging millions of new consumers and adding 68,000 new merchant partners,” said Siemiatkowski. at that time In a press release.
In March, Klarna fine The company was forced to pay 7.5 million Swedish kronor (around $723,000) in damages after a Swedish court ruled that it had violated the European Union’s General Data Protection Regulation (GDPR).
The Swedish Administrative Court of Appeal found that Klarna had not provided customers with sufficient information about how it would store their personal data, and that the information it did provide was unclear or difficult to access.
of Swedish Privacy Agency In March 2022, Klarna announced that it had discovered it had not complied with GDPR regulations. Have Related How to tell users how to handle their information Personal data.
Klarna said at the time that the audit looked into deficiencies in the privacy notice used for three months, from March to June 2020, and related to the information provided in the privacy notice, not to Klarna’s collection or handling of data.
