Microsoft To Pay $3 Mn Fine For Selling Software To Sanctioned Russian Firms

The total value of these sales and related services was $12,105,189.79.

The total value of these sales and related services was $12,105,189.79.

Microsoft will pay a $3 million fine in the US from 2012 to 2019 for selling software to sanctioned companies in Russia, Cuba, Iran and Syria.

Microsoft will pay a $3 million fine in the US from 2012 to 2019 for selling software to sanctioned companies in Russia, Cuba, Iran and Syria.

According to the US Department, the majority of apparent breaches have involved Russian entities or persons based in the Crimean region of Ukraine, and resulted from the failure of Microsoft entities to identify and prevent the use of their products by proscribed parties. Treasury.

“The settlement amount reflects the determination of the Office of Foreign Assets Control (OFAC) that the Microsoft entities’ conduct was non-egregious and voluntarily self-disclosed, and further reflects the significant remedial measures Microsoft took in pursuit of the apparent violations, It said in testimony.

According to an OFAC enforcement notice, Microsoft, Microsoft Ireland and Microsoft Russia failed to track who was purchasing the company’s software and services through third-party partners.

Between July 2012 and April 2019, Microsoft entities engaged in 1,339 apparent violations of multiple OFAC sanctions programs when they sold software licenses, activated software licenses, and/or provided services related to servers and systems located in the US and Ireland, SDNs blocked individuals, and other end users located in Cuba, Iran, Syria, Russia, and the Crimean region of Ukraine.

“The reasons for these apparent breaches include the lack of complete or accurate information on the identity of end customers for Microsoft’s products,” Treasury said.

The total value of these sales and related services was $12,105,189.79.

According to the US agency, Microsoft Russia employees may also have intentionally tried to sabotage the company’s due diligence efforts.

A Microsoft spokesperson said that “Microsoft takes compliance with export controls and sanctions very seriously, which is why after learning about screening failures and violations by some employees, we voluntarily disclosed them to the appropriate authorities.” “.

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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)