This afternoon, the electronic payment firm PayPal, has settled with the United States Treasury Department, on charges of sanction violations. The firm has agreed to pay $7.7 million for its involvement in sanction programs, against countries like Cuba, Sudan and Iran.
PayPal which is owned by eBay Inc. (NASDAQ:EBAY), is accused of not sufficiently screening its transactions and business for regions, where the United States sanctions were in place for, several until 2013. The neglect from PayPal has led to 486 apparent violations of United States Law according to the statement from the Treasury Department.
Paypal also failed to act on signs, and processed about $7,000 worth of payments for Kursud Zafer Cire. Cire, is a Turkish national who is on the sanctions blacklist for ties to weapons of mass destruction. The law clearly states that United States based companies are not allowed to do business with anyone on the list, due to their consideration of the person being an enemy of the U.S.
Though PayPal has done better since 2013, eBay has decided to part ways with PayPal, and will be its own separate entity later this year. The company is planning to pay the settlement in one lump sum even if it does hurt its financials.