Apple’s Irish subsidiary has been fined £390,000 (about $516,110) by the UK government after making payments in 2022 to a Russian streaming platform that was under sanctions.
The penalty relates to financial transactions that were deemed to have breached UK sanctions rules, with authorities taking action over payments linked to the restricted service. The case highlights continued scrutiny of international payment flows involving sanctioned entities following Russia-related restrictions introduced in recent years.
The UK government’s Office of Financial Sanctions Implementation (OFSI) has fined Apple Distribution International Ltd. (ADI), Apple’s Ireland-based subsidiary, £390,000 (around $516,110) for breaching sanctions rules related to payments made in 2022.
According to OFSI, ADI made two payments totaling £635,618 to Okko LLC, a Russian video streaming platform that was subject to UK sanctions following Russia’s invasion of Ukraine. The transactions were processed through UK banks and occurred in June and July 2022.
The regulator noted that ADI voluntarily disclosed the payments after identifying the issue. No violation was attributed to Apple Inc. itself, only to the subsidiary responsible for handling developer-related payments, including those tied to the App Store ecosystem.
In a statement, Apple said it complies with applicable laws in all regions where it operates and treats sanctions compliance seriously. The company added that it promptly reported the issue after discovering that the payments had been made shortly after the recipient became affiliated with a sanctioned entity, and emphasized that it continues to strengthen its compliance processes.
OFSI also stated that while Apple relied on internal and affiliated systems for payment processing and screening, companies ultimately remain responsible for ensuring full compliance with financial sanctions regulations.