Interactive Brokers Faces $11.8 Million Penalty Over Sanctions Violations

The U.S. Treasury's Office of Foreign Assets Control announced an $11.8 million settlement with Interactive Brokers for violations of various sanctions. Infractions included services to sanctioned regions and people, and processing trades restricted by the Chinese Military-Industrial Complex program.

The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) disclosed on Tuesday that Interactive Brokers has agreed to a settlement amounting to $11.8 million for potential infractions of multiple sanctions programs.

These violations involved the brokerage firm providing its services to individuals and entities in regions such as Iran, Cuba, Syria, and Crimea, OFAC reported. Additionally, the firm processed security trades that are under the Chinese Military-Industrial Complex sanctions.

The charges highlight Interactive Brokers' involvement in handling transactions for individuals who are blocked under OFAC's sanctions programs, raising concerns about compliance within the financial sector.

(With inputs from agencies.)