Paypal to pay $7.7m in damages after process transactions related to the purchases of weapons of mass destructions

Paypal, according to the US Department of Treasury, has facilitated the transactions between those who have had US sanctions against them, including Cuba, Iran, Libya, and North Korea. The eBay-owned online payment company has been ordered to pay $7.7m.

About $7000 worth of the transactions were behalf of a Turkish man named Kursad Zafar Cire who was blacklisted by the US in 2009 for selling weapons of mass destruction.

According to US law, American companies are not to conduct business with anyone on the country’s blacklist.

The Treasury reported that while Paypal uses an alert system to identify blacklisted individuals, staff members have ignored recent warnings.

Paypal has been fully cooperative with the Treasury’s investigation.

Join us, it's free.

Become a member to get access to:

  • Exclusive Content
  • Daily and specialised newsletters
  • Research and analysis

Join us, it’s free.

Want to read this article and others just like it? All you need to do is become a member of The Drum. Basic membership is quick, free and you will be able to receive daily news updates.