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Amazon Will Pay $134.5 Thousand For Violating Sanctions Against Crimea, Iran, And Syria

Amazon Will Pay $134.5 Thousand For Violating Sanctions Against Crimea, Iran, And Syria

Amazon, the world's largest online retailer, will pay a fine of $134,523 to settle claims by us authorities related to the company's violation of several sanctions programs, according to a statement by OFAC (Office of Foreign Assets Control, a division of the US Treasury responsible for enforcement in the field of sanctions).

OFAC notes that "due to the shortcomings of the automated system for tracking sanctions the company supplied goods and services to people subject to OFAC sanctions, to customers in regions or countries subject to sanctions programs, including Crimea, Iran, and Syria, as well as to individuals located or working in foreign missions of States under us sanctions."

Between November 2011 and October 2018, individuals located in Crimea, Iran, and Syria posted on the platform orders for the purchase of consumer goods and services, and transaction details clearly indicated that delivery would be made to regions under us sanctions, the regulator said in a statement.

In the service, orders were also accepted and processed for people who are located or working in foreign missions of Cuba, Iran, North Korea, Sudan, and Syria, which are also subject to sanctions regimes.

The total amount of transactions, including deliveries to individuals under various OFAC sanctions, was about $269 thousand.

Taking into account the fact that Amazon voluntarily notified the regulator of many violations, OFAC did not collect the maximum fine provided for by current legislation but decided to limit itself to half the amount of transactions concluded with violations of sanctions programs.

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In 2019, according to the X-Compliance information system, the total amount of fines imposed by OFAC in connection with the violation of sanctions was $1.289 billion - this is 18 times more than in 2018. The largest fines over the past year were imposed on Standard Chartered Bank ($639 million) and UniCredit Bank AG ($553 million) for violating anti-Iranian sanctions.

For the first quarter of 2020, the regulator imposed 3 fines in connection with the violation of US sanctions, their total amount was $8.967 million. The largest fine, $7.8 million, was received by the Swiss company SITA for providing telecommunications and IT services to airlines that are involved in the SDN list (Specially designed Nationals List).