Microsoft fined for violating sanctions by selling software to Russian companies

Microsoft fined for violating sanctions by selling software to Russian companies

In response to the alleged violations, Microsoft and its Ireland and Russia subsidiaries agreed to a settlement worth $2.98 million with The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury. The company also paid $624,013 to the Bureau of Industry and Security (BIS). BIS later issued a $276,382 credit, bringing Microsoft’s net settlement to almost $3.3 million for both bodies.

Despite a maximum fine of more than $404.6 million, the OFAC decided that less than 1% of this would be sufficient given Microsoft’s voluntary self-disclosure of the apparent violations and the non-egregious nature of the case despite the “reckless disregard for US sanctions.”