Home / Business and Economy / Apple Fined £390K for Russian Sanctions Breach
Apple Fined £390K for Russian Sanctions Breach
30 Mar
Summary
- Apple subsidiary paid £635,618 to a sanctioned Russian firm.
- Payments were made via UK banks in June and July 2022.
- The company was fined £390,000 for breaching Russian sanctions.
Apple Inc.'s European subsidiary, Apple Distribution International Ltd., has been fined £390,000 by the UK for violating Russian sanctions. The Office of Financial Sanctions Implementation (OFSI) determined that the Republic of Ireland-based company made payments totaling £635,618 to the Russian streaming platform Okko LLC. These transactions occurred in June and July of 2022, via UK banks.
At the time of these payments, Okko LLC was under UK sanctions following Russia's invasion of Ukraine. Apple Distribution International Ltd. voluntarily disclosed these breaches to OFSI. The agency noted that Apple had utilized corporate affiliates for its payment processes, sanctions screening, and due diligence measures.
OFSI issued a warning to multinational corporations, emphasizing that companies bear the ultimate responsibility for ensuring compliance with financial sanctions. The agency highlighted that while third-party compliance firms can be valuable, they do not absolve companies of their duty. This action follows a similar fine issued to the law firm Herbert Smith Freehills for £465,000 over Russian sanctions breaches.
