DXC Technology Company disclosed it might have violated U.S. sanctions and export controls against Russia in its sale of a Russian subsidiary.
The Virginia-based IT services company stated Friday in a 10-K filing with the Securities and Exchange Commission it voluntarily disclosed the potential violations to the Treasury Department’s Office of Foreign Assets Control (OFAC) and Commerce Department’s Bureau of Industry and Security in August.
The company sold Luxoft’s Russia business to IBS Holding in April 2022 as part of its exit from the country following Russia’s invasion of Ukraine. Luxoft is a global digital and engineering firm DXC Technology purchased in 2019.
“The company’s review of potential sanctions violations is ongoing, and the company may make further disclosures to relevant agencies as its review continues,” DXC said in its disclosure.
DXC also reported possible sanctions violations to OFAC and U.K. regulators in 2017 that might have occurred during its merger with its predecessor, Computer Sciences Corp.
Those potential violations, disclosed in 2019, related to insurance premium data and claims data processed by two joint ventures partially owned by Xchanging, which CSC acquired in 2016. Xchanging is a London-based technology services provider for sectors including insurance, financial services, and healthcare.
That merger was completed in April 2017.
DXC did not respond to a request for comment.
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