LONDON: British American Tobacco (BAT) will pay US$635 million to US authorities after a subsidiary entered a guilty plea over sanctions violations linked to North Korea, reported PA Media/dpa.
The Dunhill and Lucky Strike maker said it has agreed a settlement with the Department of Justice and the Office of Foreign Assets Control.
The US sanction breaches relate to its business activities in North Korea between 2007 and 2017.
The world’s second biggest tobacco firm said last year it had set aside money to pay the fine and said its broader financial guidance has not been affected.
Chief executive Jack Bowles apologised over the misconduct on Tuesday.
He said: “On behalf of BAT, we deeply regret the misconduct arising from historical business activities that led to these settlements, and acknowledge that we fell short of the highest standards rightly expected of us.
“Adhering to rigorous compliance and ethics standards has been, and remains, a top priority for BAT.” - Bernama
