British American Tobacco under criminal investigation in US for possible sanctions busting
British American Tobacco (‘BAT’) is under a criminal investigation by US regulators for a possible breach of sanctions. So says the annual report the company filed in March with the US Securities and Exchange Commission.
In the report, the world’s second-largest cigarette maker made mention of the investigation by the US Department of Justice and by the US Office of Foreign Assets Control (‘OFAC’).
BAT said it is cooperating in the probe and, while it could not assess ‘the potential for fines, penalties or other consequences,’ they might be ‘material’. The London-headquartered company did not provide any further details and the DoJ and OFAC have refused to confirm or deny any investigation.
The Times of London reported that the investigation is related to ‘suspicions of breach of sanctions,’ adding it is unclear which country or countries the regulators are focusing on. BAT identifies both Cuba and Iran in its regulatory filings as two countries in which it does business – albeit through local agencies – that are subject to sanctions.
