Amazon Discloses Iranian Transactions That May Have Violated US Sanctions, Warns It May Be "Penalized"

Tyler Durden's picture

In a 10-K filed on Friday afternoon, Amazon disclosed that certain transactions and business ties with Iran may have violated U.S. sanctions, warning that it may be penalized after a regulatory review of the activities.

In the "Other Contingencies" section of its 10-K, Jeff Bezos' company had determined that, between January 2012 and December 2016 it had "processed and delivered orders of consumer products for certain individuals and entities located outside Iran covered by the Iran Threat Reduction and Syria Human Rights Act or other United States sanctions and export control laws. The consumer products included books, music, other media, apparel, home and kitchen, health and beauty, jewelry, office, consumer electronics, software, lawn and patio, grocery, and automotive products."

The world's biggest online retailer also said that it has "voluntarily reported these orders to the United States Treasury Department’s Office of Foreign Assets Control and the United States Department of Commerce’s Bureau of Industry and Security." and said it will cooperate with a review by the agencies, "which may result in the imposition of penalties."

As Bloomberg, which first spotted the violation, explains, the violations are the result of then-President Barack Obama's signature of the ITRA in 2012, meant to strengthen trade restrictions on Iran and try to persuade the country to stop its nuclear activities. This law imposes civil penalties and takes other action against foreign subsidiaries of U.S. companies engaging in transactions with Iran. In January 2016, the U.S. lifted many of the economic sanctions tied to the nuclear program.

Amazon further clarified the violations which consisted of consumer products sold to individuals and unspecified groups controlled or owned by the Iranian government, among which "consumer products valued at approximately $50 for an Iranian embassy located in a country other than Iran; consumer products valued at approximately $1,300 for an individual designated under Executive Order 13224; consumer products valued at approximately $2,400 for an entity owned or controlled by the Iranian government; and consumer products valued at approximately $250 for an individual who may have been acting for an entity designated under Executive Order 13382 and owned or controlled by the Iranian government. The consumer products included books, other media, apparel, home and kitchen, jewelry, office, toys, consumer electronics, software, health and beauty, pet products, and lawn and patio."

The company also said that is was "unable accurately to calculate the net profit attributable to these transactions" and said it does "not plan to continue selling to these accounts in the future."

The statement concludes with Amazon's declaration that its "review is ongoing and we are enhancing our processes designed to identify transactions associated with individuals and entities covered by the ITRA."

Why come clean now, and disclose violations that took place as far back as 2012?

Perhaps because Amazon, along with many other tech companies, was a key catalyst behind the recent successful lawsuit against the Trump administration's immigration executive order. While it is unknown if AG Sessions (or Trump himself) will retaliate against said companies, Jeff Bezos, who has a long "history" with Trump, decided not to take the chance.

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nmewn's picture

Am I to assume these products were NOT delivered by drone? ;-)

MFL5591's picture

Would love to see this asshole and Soros in prison!

Escrava Isaura's picture

Not only Amazon but every US business, being that a large corporation or small US business should be free to do any business, anywhere, period.

The libertarians in the US should be outraged……………Wait a minute, I just remember that US libertarians are not real libertarians, but ideologues, meaning, they don’t care about the American workers but themselves.     


shovelhead's picture

Adding up oranges and apples to get potatos again?

The fog in your brain is amusing to see when committed to writing.

philipat's picture

I'm just guessing but I don't think this will be featured prominently in WaPo?

johngaltfla's picture

Bezos you clown, meet President Don "The Hammer" Trump.

Oh and yeah baby, those fines will be the maximum allowed under US law.

Cognitive Dissonance's picture

"The consumer products included books, music, other media, apparel, home and kitchen, health and beauty, jewelry, office, consumer electronics,
software, lawn and patio, grocery, and automotive products.""

So, no nuclear aircraft carriers or F-35 fighter jets then? Surprising since Amazon promised we two day delivery on a slightly used A-10 Warthog. Tuesday can't get here soon enough for me.

<I hope it comes with an operator's manual.>



Arnold's picture

You'll have to E Bay scrounge for SCUDS though.

xythras's picture
xythras (not verified) stizazz Feb 11, 2017 11:07 AM

Show Bezos the insides of Guantanamo. And to any Obama friends

During 8 years Odumbo planted too many muslims where only true americans belong.

Trump BUSTS Major Islamic Spy Ring, Evidence Points to Obama




greenskeeper carl's picture

Ordinarily I don't think the govt should be dictating to private companies who they can do business with. I know this makes me kinda a hypocrit in this insance, but i hope trump bitchslaps that little dipshit and teabags him. No fine is too big....

yogibear's picture

Bezos has deep pockets. Time to start shaking money from the money tree. Trump can fine Amazon for billions.

Escrava Isaura's picture

johngaltfla: President Don "The Hammer" Trump.

So, are you telling us that Trump is gonna jail bankers?

Say no to Israel?

Balance the budget?

Close US bases in Japan? Or Africa?

I guess you’ll find out who the clown is………..sooner than you might think, because there will be no fine.


ZD1's picture

Closing the borders and deporting illegals is a start.

Go start packing.

sun tzu's picture

Two weeks and he still hasn't corrected the wrongs of the past 200 years and created a utopia yet. We knew he was a liar.


LOL you stupid sons of whores are pathetic

Keyser's picture

I would not want to be on the bad side of the Trump / Sessions DOJ, especially if your hobby blog known as WaPo has been roasting Trump at every opportunity... Besos better pucker up, because this is going to be good... 

nmewn's picture

WaPo and the NYT's...they are fucking I guess for myself, I'm on a NYT's kick this morning, here's one.

Apparently our little snowflakes are getting "all grown up" these days ( and beginning to appreciate the finer things in life under the Constitution, like freedom of association...

“I can’t live with someone who supports a ‘leader’ with those types of ideals,” Jessica, 32, a teacher who did not want her last name used because she feared harassment online, wrote in an email. She posted an ad on Craiglist for a room share shortly after the inauguration. “I feel like I’m going to a protest every single day.”

In one recent ad, a couple in the area who identified themselves as “open-minded” and liberal advertised a $500 room in their home: “If you’re racist, sexist, homophobic or a Trump supporter please don’t respond. We won’t get along.”

In another, two women in their 20s were searching for a roommate to take over a lavender-colored room in their Columbia Heights apartment for $550. The women detailed their love of happy hours, a “good Netflix sesh,” pho and tacos.

“We’re open to any age/gender identity/non-identity,” they added, “so long as you didn’t vote for Trump., admittedly this is well after they inserted themselves into situations where they helped drive wedding cake bakers and pizza shop owners out of business for the very same thing (freedom of association)...BUT...its the start in their "long evolutionary process" of becoming Constitutionalists.

If they could only realize their own hypocrisy...first ;-)

Jeffersonian Liberal's picture

We should take the room-letters to court and FORCE them to rent to raving Trump supporters.

nmewn's picture

Now that my friend, would indeed be some serious...SOCIAL JUSTICE...served up on a nice, cold, plate ;-)

nmewn's picture

And unfortunately completely normal for Escrava.

BigFatUglyBubble's picture

That is an unfair prejudiced generalization.  Plus, "taking care of yourself" is something we need a lot more of, not less.  How does being an ideologue equate to being self serving anyway?  You make good points sometimes, but this time I don't see your point at all.

Byte Me's picture

A "One off" fine of $1.0000 T should be sufficient.

With a second offence requiring a visit to a physical manifestation of No Debt's icon.

Arnold's picture

Dead people can't pay the Vig.


--Old Cosa Nostra saying.

Escrava Isaura's picture

BigFatUglyBubble: That is an unfair prejudiced generalization. 

Not at all. US libertarians don’t support labor. US libertarians support gold that crashes small business and labor. They favor legislating  morality, such as all kinds of bans all based in religion dogmas.

 "taking care of yourself" is something we need a lot more of, not less. 

Agree, but that’s a conservative view, not a libertarian or a liberal view.

How does being an ideologue equate to being self serving anyway? 

Because ideologues (libertarians and Christian right) don’t compromise. Cooperation is impossible. And these two hijacked the US conservatives as the neoliberals hijacked the liberals.  

You make good points sometimes

Because I look at the facts, not what’s written. Not what the propaganda, when most people agreed with, keep repeating.  


nmewn's picture

"US libertarians support gold that crashes small business and labor." 


Very revealing, so all this talk about being anti-debt/fiat/paper was, only just talk? ;-) 

Escrava Isaura's picture

Because there is only a limited amount of gold so people will figure out a way around it, leading to all kinds of schemes, downright frauds.

America needs to default on the odious debt to the banks, NOW and renegotiate to $20 cents on the debt.

Then, issue DEBT-FREE money to Americans…………..Of course, if libertarians really care about the American people. 


nmewn's picture

Limited amount means rare and becoming more valuable over

Escrava Isaura's picture


Limited means that business and workers will always be falling behind. Probably, most likely, in my opinion, gold will be even worse than debt money, meaning, even worse than the current system.


nmewn's picture

Well, I'm glad to find out the QUANTITY of gold REQUIRED for payment (in fiat terms) has actually gone down.

In your opinion of course, I learn something new everyday it seems ;-)

Escrava Isaura's picture

Up an/or down is irrelevant, because gold, even when I was in Brazil under rising inflation, it’s difficult to work with. Very few locations selling it. Trying to sell it was a frikking nightmare, because the buyers will nickel-and-dimed you.

The dollar, backed then, it was the best, because it was the easiest to trade. Plenty of buyers. The problem was too many faked dollars. I was lucky because I had direct accesses to Americans as they arrived in Brazil, so I would buy dollars from them, as much as I could.



fpdguy's picture

Libertarians, minarchists, ancaps, etc. advocate to legalize competition of monetary objects -be it in dollars, euro's, gold, silver, bitcoin, home depot gift cards, or whatever.  In general, gold & silver are thought to be one of the easiest doors to reintroduce this monetary competition because of it's long historical use and explicit requirement in US founding documents.  However, all legalized competition is welcome as it reduces the power of monopoly and the forced participation in the current fiat scheme.

Escrava Isaura's picture

Sorry, I know every word that you wrote, but I have no idea what you said.


robobbob's picture

don’t compromise?

compassion and compromise is how the US arrived at this point of collapse. bankers and marxists view compromise as not only weakness, but as just a temporary pause to continuing their agenda. no issue is ever settled for these groups until they achieve their final goal however long it takes.

Had Christians gone full medieval UNcompromise, USURY would still be illegal and Godless marxists would have burned at the stake.

Escrava Isaura's picture

Christians were never able to grasp money, even to this day. Christians track record about this issue is an abomination………….as within other social issues.


BigFatUglyBubble's picture

"Not at all. US libertarians don’t support labor. US libertarians support gold that crashes small business and labor. They favor legislating  morality, such as all kinds of bans all based in religion dogmas."

Ron Paul repeatedly talks about how you can't legislate morality.

Escrava Isaura's picture

I agree with Ron Paul on that issue. So would most conservatives, say over 80%, and most liberals, say 98%, would agree with that too

However, try to say that to the Christian right and most libertarians? I don’t think you could get 0.05% agreeing with that statement, because that would go against their core believes.

By the way, and again, when I say libertarians, I mean Americans libertarians, that are very stubborn.



BigFatUglyBubble's picture

I am really not following.  Liberals base a huge part of their platform on legislating morality through governmental wealth distribution.   

Escrava Isaura's picture

The liberals, if they could, would not legislate any social issue. They would legislate labor, economics, and political issues, because they don’t trust private power, meaning, corporatism (large corporations) and concentration of wealth.

Now, if the US economy, I mean, through out of the whole US continent and not just in one area, was run by the locals, such as in local cooperatives, local communities, and their economies under control of the local labors, craftsman, and artisans, true conservative self-sufficient systems within communities, the liberals would have no problem with that.

Now if a society imposes religion, capitalism, communism, or any other set of believes and dogmas, be very suspicious, and legislate these suckers to death, because they deserve nothing less.



BabaLooey's picture

I'm convinced you wipe your nose after you take a shit.

I'm also sure that you shovel snow on your driveway from your lawn.



City_Of_Champyinz's picture

Nailed it, he ain't all there IMHO...

44_shooter's picture

You're an idiot.

You're an idiot.

You're an idiot.


Isn't there something on TV you should be watching right now?

vaft's picture

Iran Threat Reduction and Syria Human Rights Act -- (((who))) came up with the name for this legislation, which bans corporations from selling them groceries?

HowdyDoody's picture

The same (((group))) of people that prohibited sales of medicines to those countries.

carbonmutant's picture

Selling your gun to a guy that wants to kill you, sounds like a serious contender for a Darwin award.

Handful of Dust's picture

Rumor is the Aya-Told-Ya ordered 500 Hello Kitty dolls and those blow up silicone dolls.


i'll wait for Woof Shitzer and CNN's Fake Newsman FarHeed Zack-A-Rhea to confirm it.

847328_3527's picture

@arnold, if Trump and Jack Ma team up and he creates 1,000,000 jobs, perhaps Alibaba will provide competition to Amazon which can be pretty painful since Ma's prices are so much lower.


If I were an AMZN shareholder or Board memeber I'd be concerned. They have a good thing going right now.

Arnold's picture

Detant worked well for many years.


 The Amazon Empire has very diverse investments to keep them a non profit.

Between the Walmart - like cut and squeeze on suppliers, and the just  passing  through to someone elses warehousing, you have a point.

With all business models I've seen recently, exponential growth is the key factor.

Sauntering, walking, running, and panicking in front of the steam roller.

I ran out of zeros on my calculator about the same time ultimately unservicable debt began to take off, say 10-12 years ago.