Chinese Telecom Giant To Pay Record Fine For Iran Sanctions Violations

China's ZTE to pay $892M for violating Iran sanctions

ZTE was also charged for making 282 shipments that included routers, servers and other equipment to the country of North Korea, which is under trade embargos by the U.S.as well.

On Tuesday, the USA government made an example of ZTE in a different way. It relies on US companies including Qualcomm (QCOM.O), Microsoft (MSFT.O) and Intel (INTC.O) for components. Qualcomm, Microsoft and Intel are among its suppliers.

The ZTE has created strong partnerships with many USA suppliers that supported almost 130,000 high-tech jobs, and it anticipated continued growth and business expansion over the next several years with its innovative leadership in 5G area, said Zhao Xianming, chairman and CEO of ZTE, in the statement.

It also agreed to three years of probation, and the installation of a corporate monitor as well as a compliance and ethics programme.

Under the agreement, which is pending approval before a US district court in Texas, ZTE could face an additional fine of $300 million if it commits new violations during a seven-year probationary period.

U.S. officials said on Tuesday the firm would immediately pay a massive fine of $892 million for flouting United States sanctions by shipping to Iran and North Korea.

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"The Chinese government consistently opposes foreign governments putting unilateral sanctions on Chinese companies". He also restructured ZTE's legal department and separated it from the compliance department. The US government says ZTE officials repeatedly lied to and misled federal investigators over the course of a five-year investigation. Meanwhile, the complaint against ZTE includes violation of sanctions by shipping product from the USA to Iran.

A Chinese telecommunication firm has agreed to pay a combined civil settlement of 1.19 billion Dollars to multiple US government agencies for its participation in the trade of controlled goods with Iran and North Korea, the USA government announced on Tuesday. ZTE won US government's mercy after a series of talks with Washington officials, and the company was allowed to export some supplies until June 30, 2016.

ZTE replaced executives allegedly involved, including naming a new president.

Excluding that provision for losses, the Shenzhen-based company estimated it would have reported a 19 per cent increase in annual net profit to 3.82 billion yuan, up from 3.21 billion yuan in 2015.

The Treasury Department said the settlement includes $101 million to settle potential civil liability for Iran sanction violations.

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