WASHINGTON (Sputnik) — The Zhongxing Telecommunications Equipment Corporation has agreed to pay $1.19 billion to the US federal government to settle allegations it violated US sanctions against Iran, the Department of Justice said in a press release on Tuesday.
"Combined penalty of $1.19 billion with Department of Commerce and Department of Treasury actions shows all of government approach to sanctions enforcement," the release stated.
In total, ZTE agreed to pay the US government $892,360,064 while the US Department of Commerce’s Bureau of Industry and Security (BIS) suspended an additional $300,000,000 if the company violates its settlement agreement with BIS, the release stated.
"[OFAC] today announced a $100,871,266 settlement agreement with Zhongxing Telecommunications Equipment Corporation and its subsidiaries and affiliates… to settle ZTE’s potential civil liability for 251 apparent violations of the Iranian Transactions and Sanctions Regulations," an earlier release stated.
ZTE management was further accused of developing a company-wide plan to evade detection and conceal the transactions, including deleting evidence and providing the US government with fake reports.
The total value of the 251 transactions was $39,633,972, according to OFAC.
