Apple: U.S. Sanctions Violations over Slovenian Developer

U.S. sanctions violations: Apple paid a heavy fine after it voluntarily disclosed that it had violated the US penalty by accidentally allowing a Slovenian developer’s apps into the App Store. In addition, over 2 years the United States workplace of Foreign Assets management places them within the blacklist.

The Wall Street Journal reports that Apple entered into an app development agreement with app developer SIS d.o.o. That company got blacklisted in February 2015 over being part of an international steroid trafficking network. In 2017 finally, the developer was removed from the blacklist. But Apple had been allowing their apps into the App Store throughout the offending period.

The reason why this happened can be chalked up to a formatting issue:

On the day Mr. Stjepanovic and SIS were on the blacklist. Apple ran the new designations against its app developer account holder names however the company’s discipline-screening tool didn’t establish SIS as a blacklisted entity. The reason is Apple’s system registers the corporate as ‘SIS DOO,’ besides ‘SIS d.o.o’ on OFAC’s list.

Apple reportedly failed to identify Mr. Stjepanovic as a blacklisted individual in its system.  Accor ding to the agreement, Apple didn’t screen all individual users associated with an App Store account at the time.

An Apple spokesman issued the subsequent statement on Monday:

In 2017, we found that we had accidentally paid a developer on the US Treasury’s List of Specially Designated Nationals. We reported it to the authorities and fully cooperated with their investigation.

On the contrary, the period during which the violations happened showed:

“reckless disregard for the US sanctions requirements”

According to the settlement agreement between OFAC and Apple. OFAC credited Apple for its voluntary self-disclosure of the so-called violations. Saying the iPhone maker improves the role of its global export. And leave a compliance officer in the review and advance process.

Conclusion:

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