Financial Supervisory Authority of Norway finds serious quality management and AML shortcomings at Kapital Regnskap and seeks remediation ahead of follow-up inspection

The Financial Supervisory Authority of Norway has published a supervisory report on Kapital Regnskap AS assessing whether the firm’s accounting services are operated in line with applicable rules. The review found material weaknesses in quality management, routines and documentation, as well as breaches of the duty to provide information to the supervisor and requirements under the Anti-Money Laundering Act; the Authority had warned it would revoke the firm’s approval as an accounting company but decided not to do so at this stage after considering the firm’s response, additional documentation and measures taken. The findings include inadequate quality control at engagement level and insufficient documentation of work performed, with particular challenges linked to dispersed delivery arrangements, including outsourced accounting tasks to Pakistan and an engagement-responsible authorised accountant working remotely. The Authority also identified failures to submit requested documentation within deadlines, anti-money laundering procedures not meeting statutory requirements and customer due diligence gaps (including late risk classification and missing documentation of identification and PEP screening in a case involving a 70% owner), as well as weaknesses in engagement execution such as missing periodic reporting and incomplete reconciliations and supporting documentation for the 2023 year-end accounts (initially missing or inadequate reconciliation documentation for 88%, 81% and 80% of reviewed balance-sheet accounts in three engagements). The Authority has requested a response on how quality assurance and responsibility will be organised going forward by 4 March 2026 and has indicated it will conduct a new on-site inspection to verify that the deficiencies have been remedied and that the firm’s stated measures operate as intended.