LONDON — The United Kingdom has fined a subsidiary of Apple £390,000 (US$516,000) for breaching financial sanctions related to Russia, according to an official statement released on Monday.
The penalty was imposed on Apple Distribution International (ADI), an Ireland-based unit responsible for handling payments to software developers using Apple’s App Store.
The Office of Financial Sanctions Implementation (OFSI) said the breach occurred in 2022, when ADI instructed a UK-based bank to process two payments totalling approximately £635,619 to Okko, a Russian online video streaming platform linked to an entity under UK sanctions.
The transactions took place shortly after Western governments imposed sweeping financial restrictions following Russia’s invasion of Ukraine.
OFSI said the penalty was issued on March 19, adding that its investigation found no evidence that ADI had intent, knowledge, or reasonable cause to suspect that the payments breached sanctions rules.
The regulator also confirmed that no breach was identified at the level of Apple’s parent company.
In a statement, Apple said it takes compliance with international sanctions “extremely seriously” and acted promptly after identifying the issue. The company said it reported the payments to UK authorities after discovering that the developer involved had recently become affiliated with a sanctioned entity.
