British American Tobacco disclosed it has set aside 450 million pounds (U.S. $545 million) for the resolution of an investigation into apparent sanctions violations by two U.S. agencies.
The Department of Justice (DOJ) and Treasury Department’s Office of Foreign Assets Control (OFAC) have been probing the cigarette manufacturer since at least 2020, when it first disclosed the matter. British American Tobacco has not provided further detail regarding what potential sanctions it might have violated or when.
The company is “currently engaged in discussions with both agencies to find a resolution through settlement,” it stated in its half-year report published Wednesday. British American Tobacco added it “cannot be excluded that the amount of any potential settlement with the DOJ and OFAC may vary from” the amount it has reserved.
The DOJ and OFAC do not comment on ongoing investigations.
OFAC is the primary sanctions enforcer in the United States, though the DOJ will get involved in certain cases. For example, the agencies worked with the U.S. Department of Commerce’s Bureau of Industry and Security as part of a resolution with SAP in April 2021 that saw the German software company pay more than $8 million in combined penalties after admitting to committing violations of sanctions against Iran.
British American Tobacco currently has locations in nearly 150 countries around the world.