Enforcement Release - Microsoft Corporation

Date issued: Apr. 06 2023

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TURBOFAC Commentary (3111 words)

Notes:

1) BACKGROUND, RELATIONSHIP WITH BIS PENALTY

On April 6, 2023, OFAC announced its settlement with Microsoft, and BIS concurrently announced its own settlement for violations arising out of the same facts. See Settlement Agreement (BIS) - Microsoft Corporation, which provides some factual information useful for a better understanding of some aspects the of the OFAC Enforcement Release, but note that the BIS penalty only covers seven violations occurring over a one-year period, while the OFAC Enforcement Release covers many violations. It is not clear why there were so few charged BIS violations, i.e. it is not clear whether only seven of the 1,339 OFAC violations were also BIS violations.

2) LEGAL BASES FOR LIABILITY

a. JURISDICTION

Microsoft Corp. is a U.S. person, directly subject to all of...