Ericsson Panamá fined for Cuba embargo breach

Mobile equipment maker Ericsson's subsidiary in Panama will pay a $1.7 million penalty to the US Department of Commerce for violating US export restrictions on Cuba, a settlement agreement showed.

The agreement showed that the firm's Panama branch operated a "scheme" under which it sent broken equipment from Cuba to the US for repair after masking its origin.

Ericsson de Panamá "knew that exports from the United States to Cuba were unlawful because it had been informed by its parent company of the embargo placed on Cuba by the United States," the agreement said.

Source: Reuters