ZTE fined $1.1bn for flouting US Sanctions

By John Lee.

Chinese telecom giant ZTE Corporation (Zhongxing Telecommunications Equipment Corporation) has agreed to plead guilty to charges that it shipped US-made equipment to Iran and North Korea, and has been fined $1.1 billion.

The equipment included routers, microprocessors and servers controlled under export regulations for “security, encryption… and/or anti-terrorism reasons“.

Steven T. Mnuchin, US Secretary of the Treasury, said:

“Today’s settlement is OFAC’s largest ever against a non-financial entity and sends a powerful message that Treasury will aggressively pursue any company that willfully violates U.S. economic sanctions laws and obstructs federal investigations of such violations.”

The full text of the settlement can be viewed here.

(Source: OFAC)

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