Apple Distribution International (ADI), an Irish subsidiary of Apple, has been fined £390,000 by the UK government for breaching sanctions against Russia. The fine was imposed by the Office of Financial Sanctions Implementation (OFSI) over payments made to a Russian streaming service.
ADI made two payments totalling more than £635,000 to Okko, a streaming platform owned by JSC New Opportunities, a company that was placed under UK sanctions in June 2022. The payments were processed through a UK-based bank in June and July of that year.
Okko had previously been owned by Sberbank, Russia’s largest bank, which was sanctioned shortly after the invasion of Ukraine. However, it was sold to JSC New Opportunities in March 2022, a move described by the Foundation for Defense of Democracies as a likely attempt to shield assets from Western sanctions.
OFSI noted that ADI voluntarily disclosed the payments and engaged in settlement talks. The watchdog stated there was no evidence that ADI was aware of the sanctions breach at the time, but emphasised that non-UK companies using British financial institutions must ensure robust due diligence.
An Apple spokesperson said the company takes sanctions compliance seriously and proactively reported the payments after discovering the affiliation. Apple said it is continuously enhancing its compliance protocols.
