That reports that Online magazine The Verge. Microsoft has agreed to pay a fine for continuing to sell software to sanctioned partners between 2012 and 2019.
The company did not necessarily conduct direct business with sanctioned partners. The total value of these sales and related services was over $12 million.
Authority speaks of obvious violations
According to the US Treasury Department, “the majority of the apparent violations involve blocked Russian entities or individuals in the Crimean region of Ukraine.” Microsoft will have to pay around $2.98 million to the Treasury Department’s Office of Foreign Assets Control (OFAC) and $347,631 to the Commerce Department. Microsoft probably won’t have to pay the full amount because the company gets a credit for its agreement with the Treasury Department. Microsoft USA, Microsoft Ireland and Microsoft Russia are said to have failed to monitor who buys the company’s software and services through third-party partners. Basically, Microsoft sold software and services to companies it could legally trade with. These companies then sold the products to companies that, according to the sanctions, could not promote Microsoft products. According to the investigation, Microsoft Russia employees may also have deliberately attempted to circumvent the company’s duty of care.
The Treasury also stated that Microsoft had some other loopholes in its compliance procedures. There appear to have been instances where the company had information that should have alerted it that a sanctioned party was using its products but failed to recognize it for a variety of reasons.
- Microsoft USA, Microsoft Ireland and Microsoft Russia are said to have circumvented sanctions against Cuba, Iran, Syria and Russia.
- Microsoft pays around $3 million in fines to the US Treasury and Commerce Departments.
- Microsoft Receives Credit for Treasury Agreement.
- Total value of sales and services was $12 million.
- Microsoft sold software and services to companies who resold them to sanctioned partners.
- Microsoft Russia employees attempted to circumvent due diligence.
- Microsoft had gaps in compliance procedures even though it had information.
See also:
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