PayPal has agreed to pay the US government a total of $7.7m (around £5.1m) following claims that it allowed payments to be completed that violated the sanctions against Cuba, Sudan and Iran.
The US Treasury department said the firm had failed to screen and prevent these transactions, with one of the incidents including a $7,000 transaction from someone listed by the US government as being involved with weapons of mass destruction.
Between October 2009 and April 2013 the organisation also reportedly processed 136 transactions from an account registered to another individual known to be linked to terrorism and weapons of mass destruction.
PayPal had voluntarily reported the information to the Treasury’s Office of Foreign Assets Control and since the incidents took place, PayPal has stated that they have improved the real-time scanning and monitoring of payments.
A PayPal representative spoke to the BBC, stating: “Since then, we’ve taken additional steps to support compliance with OFAC regulations with the introduction of real-time scanning of payments and improved processes.”
According to the Treasury Department, nearly 500 transactions totaling almost $44,000 had potentially violated sanctions.