Apple subsidiary fined by UK government over Moscow sanctions breach

Core Viewpoint - The UK government has fined Apple Distribution International £390,000 for breaching sanctions related to payments made to a Russian streaming platform, Okko, which is linked to a sanctioned entity [1][2][3]. Group 1: Details of the Breach - Apple Distribution International (ADI) made two payments totaling over £635,000 to Okko from a UK bank account [2]. - The payments occurred in June and July 2022, after Okko was sold to JSC New Opportunities, a company under UK sanctions since June 2022 [4]. - Sberbank, which owned Okko prior to the sale, was among the first Russian companies sanctioned following the invasion of Ukraine [4]. Group 2: Regulatory Actions and Responses - The Office of Financial Sanctions Implementation (OFSI) imposed the fine after determining that ADI likely breached financial sanctions [3]. - ADI voluntarily disclosed the payments and engaged in settlement talks with OFSI, asserting it had no reason to suspect a breach of sanctions [5][6]. - OFSI emphasized that non-UK companies could be penalized for using UK financial institutions for payments, highlighting the need for robust due diligence frameworks [7]. Group 3: Company Statements and Compliance Efforts - An Apple spokesperson stated that the company takes sanctions compliance seriously and reported the payments to the UK government upon discovery [8]. - The company is actively working to enhance its compliance protocols to align with industry standards [8].