Microsoft to pay USD 3-Million fine for selling software to Russian firms
style="text-align: justify;">SAN FRANCISCO: Microsoft will reportedly pay USD 3 million in penalty in the United States for selling software to sanctioned companies in Russia, Cuba, Iran and Syria from 2012 to 2019.
According to the US Department of the Treasury, the majority of the apparent violations involved blocked Russian entities or people who were based in the Ukrainian region of Crimea and happened as a result of the Microsoft Entities' failure to recognise and stop prohibited parties from using their products.
The Office of Foreign Assets Control (OFAC) stated in a statement that the settlement amount "reflects OFAC's determination that the conduct of the Microsoft Entities was non-egregious and voluntarily self-disclosed, and further reflects the significant remedial measures Microsoft undertook upon discovery of the apparent violations."
Microsoft, Microsoft Ireland, and Microsoft Russia failed to monitor who was purchasing the company's software and services through third-party partners, according to an enforcement notification from OFAC.
When they sold software licences, activated software licences, and/or provided related services from servers and systems located in the US and Ireland to SDNs, blocked individuals, and other end users located in Cuba, Iran, Syria, Russia, and the Crimea region of Ukraine, the Microsoft Entities engaged in 1,339 apparent violations of multiple OFAC sanctions programmes between July 2012 and April 2019.
The lack of comprehensive or correct information on the identity of Microsoft's product end users was one of the causes of these apparent infractions, according to the Treasury. The total value of these sales and related services was USD 12,105,189.79. Microsoft Russia employees may have also intentionally attempted to defeat the company's due diligence efforts, saidthe US agency.
Microsoft takes export control and sanctions compliance very seriously, according to a spokesman, "which is why after learning of the screening failures and breaches of a few individuals, we voluntarily submitted them to the proper authorities."
