UK Fines Apple Over Breach of Sanctions Against Russia

The UK fined Apple’s European subsidiary £390,000 after it made payments to a Russian streaming platform. The Office of Financial Sanctions Implementation (OFSI) said Apple Distribution International (ADI) transferred £635,618 to streaming service Okko in two payments made in June and July 2022.

At the time, Okko was listed under UK sanctions introduced following Russia’s invasion of Ukraine. OFSI stated that ADI instructed a UK-based bank to make two payments and did not cancel these instructions. The watchdog said the incident stemmed in part from Apple’s reliance on affiliates for payment processing, sanctions screening, and due diligence, but stressed responsibility ultimately rests with the company itself.

ADI, which is based in Ireland, voluntarily disclosed the breach in October 2022 after uncovering the transactions, a move that contributed to a reduced penalty. OFSI said it applied a 35 per cent discount to a baseline of £600,000 fine, bringing the final penalty to £390,000. Apple responded to the fine, stating it takes sanctions compliance extremely seriously.