Japan-based consumer electronics manufacturer Sony Corp. revealed that some of their dealers in Dubai resold around 12.8 million US dollars’ worth of its video and medical equipment to elements of the Iranian government, something that could result in the company being fined by the United States for dealing with a country under economic sanctions. In a move to show its transparency, the Japanese electronics company admitted and filed with U.S. regulators that their dealers made transactions with Iran’s broadcasting unit and health ministry, while there were plans to sell information technology equipment to the sanctioned Middle Eastern nation’s police force.
“If the relevant authorities were to impose penalties or sanctions against Sony, the impact of such sanctions could be material,” the company’s spokesperson said on Thursday while filing with the U.S. Securities and Exchange Commission. Sony said it followed all policies and procedures applicable to nations under economic sanctions laws, but as the process originated from its dealers, the company said that there was really no assurance that all measures would be effective at that level. Sony listed four transactions with Iranian connections. Three of those deals made a net profit of less than 500,000 US dollars, while the company made a loss in the fourth transaction.
Iran is under sanction from the U.S. and other European nations as the international community has not been able to persuade Tehran to stop their nuclear development program and open up to U.N. inspectors. There are fears that Iran might be using its nuclear program for weapons development, but Iran continues to claim that it’s solely for electricity generation and medical uses. Just last week, the State of New York fined Bank of Tokyo Mitsubishi-UFJ 250 million US dollars (24.2 billion yen) for allowing transactions of state and private entities in Iran and other sanctioned countries through their New York branch.
[via Yahoo News]