Apple Fined £390K for Breaching Russian Sanctions via App Store Payments
Apple’s Irish subsidiary, Apple Distribution International, has been fined £390,000 by UK authorities for making payments to a sanctioned Russian streaming service, Okko, in 2022. This incident underscores the challenges multinational corporations face in ensuring compliance with international sanctions across complex payment networks.
In June and July 2022, Apple made two payments totaling over £635,000 to Okko, a streaming platform linked to Sberbank, Russia’s largest bank. The UK had imposed sanctions on Sberbank in April 2022 following Russia’s invasion of Ukraine. Although Okko changed ownership shortly after the sanctions were enacted, authorities suspect this move was an attempt to circumvent the restrictions while maintaining operations under a new structure.
The payments were processed through UK banks, bringing them under the jurisdiction of UK financial regulations. Despite relying on third-party affiliates for payment processing and sanctions compliance, Apple remains fully accountable for adhering to these regulations.
Apple proactively identified and reported the payments to the UK government. A company spokesperson stated, We follow the laws in the countries where we operate and take sanctions compliance extremely seriously. After identifying two payments to a developer that days earlier had become affiliated with a sanctioned entity, we promptly and proactively reported our finding to the UK government. We are constantly working to enhance our already robust compliance protocols, which are consistent with industry standards.
This case highlights the importance of timely identification of sanctioned entities to avoid financial penalties, especially for companies operating across multiple jurisdictions with layered compliance systems.
