SAP Admits to Illegal Software Exports to Iran

SAP entered into an agreement with the Department of Justice (DOJ), admitting it illegally exported thousands of copies of its software to Iran....
SAP Admits to Illegal Software Exports to Iran
Written by Matt Milano

SAP entered into an agreement with the Department of Justice (DOJ), admitting it illegally exported thousands of copies of its software to Iran.

SAP is the one of the leading enterprise software companies in the world, with a focus on ERP, cloud and IoT solutions. The company does business all over the world, requiring it to adhere to the laws and regulations of the many countries it operates within.

Unfortunately, the company has run afoul of the US, ignoring sanctions and export restrictions against Iran. As a result, SAP has entered a non-prosecution agreement with the DOJ, admitting it sold thousands of copies of its software to Iran, and agreeing to penalties and restitution.

Under the terms of the agreement, SAP will pay combined penalties of more than $8 million. SAP will disgorge $5.14 million of the money it received through the illegal sales.

“Today’s first-ever resolution pursuant to the Department’s Export Control and Sanctions Enforcement Policy for Business Organizations sends a strong message that businesses must abide by export control and sanctions laws, but that when they violate those laws, there is a clear benefit to coming to the Department before they get caught,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “SAP will suffer the penalties for its violations of the Iran sanctions, but these would have been far worse had they not disclosed, cooperated, and remediated. We hope that other businesses, software or otherwise, we heed this lesson.”

“By supplying Iran with millions of dollars’ worth of illegally exported software and services, SAP circumvented U.S. economic sanctions against Iran—pressure that is intended to end Iran’s malign behavior. However, it was SAP that first uncovered and reported this sanctions violation, and we would like to thank them for working hard to enhance their compliance program to prevent future violations,” said Special Agent in Charge Joseph R. Bonavolonta for the FBI’s Boston Division. “Let this case be a lesson to others that it’s better to self-report and own up to one’s mistakes than undermine U.S. foreign policy and adversely affect our national security.”

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