PayPal has reached a $7.7 million settlement with the U.S. Treasury for ignoring U.S. sanctions and allowing money transfers to accounts linked to Iran, Cuba, terrorism and weapons of mass destruction.
Announcing the civil liability settlement, the Treasury Department’s Office of Foreign Assets Control (OFAC) detailed a damning string of instances in which the company accepted and processed 486 transactions totaling approximately $43,934 over a five-year period that it should have stopped.
“PayPal’s management demonstrated reckless disregard for U.S. economic sanctions requirements in deciding to operate a payment system without implementing appropriate controls,” the Treasury Department said in a statement.
One of the cases involved Kursad Zafer Cire, who was named by the U.S. State Dept. in 2009 as an associate of Abdul Qadeer Khan, the Pakistani scientist who the U.S. says provided nuclear know-how to countries including Iran, Libya and North Korea.
In 2009, his name was added to the Treasury Department’s list of “specially designated nationals” — people who have been specifically named as being under sanctions by the U.S. for their involvement in terrorism, programs involving weapons of mass destruction, drug cartels or other major illicit activities.
Read the Full Article: Source – PC World