Microsoft to pay $3.3m in fines for apparent sanctions violations
The US Bureau of Industry and Security (‘BIS’) and the Office of Foreign Assets Control (‘OFAC’) announced they have imposed a combined $3.3 million in civil penalties against Microsoft for ‘alleged and apparent violations of US export controls and sanctions laws’ by apparently selling software to sanctioned entities and individuals in Cuba, Iran, Syria, and Russia.
Microsoft voluntarily self-disclosed the alleged violations to both BIS and OFAC, cooperated with a joint investigation and ‘took remedial measures after discovering the conduct at issue, which predated the export controls and sanctions imposed in connection with the current Russian war in Ukraine,’ BIS said on 6 April.
It explained that, as part of the BIS settlement, Microsoft admitted to the conduct set forth in a Proposed Charging Letter (‘PCL’) involving Microsoft’s subsidiary, Microsoft Rus LLC.
Microsoft also entered into a corresponding settlement with OFAC whereby the software giant agreed to a $2,980,265.86 civil penalty to resolve 1,339 apparent violations of OFAC sanctions regulations involving Ukraine/Russia, Cuba, Iran, and Syria.
‘In light of the related OFAC action, Microsoft was given a $276,382 credit by BIS contingent upon Microsoft fulfilling its requirements under the OFAC settlement agreement, resulting in a combined overall penalty amount of $3,327,896.86,’ BIS said.
