BTI British American Tobacco PLC

By Mengqi Sun 

British American Tobacco PLC is under investigation by U.S. authorities for a possible breach of sanctions, the company said.

The London-based cigarette maker said in its annual report, filed last month with the U.S. Securities and Exchange Commission, that it is cooperating with the Justice Department and the Treasury Department's Office of Foreign Assets Control, which enforces U.S. economic sanctions.

British American Tobacco added that while it couldn't assess "the potential for fines, penalties or other consequences" they might be "material." A company spokesperson declined to comment beyond the filing.

"We take allegations of sanctionable conduct seriously but cannot comment on any investigations, including to confirm whether or not one exists," an OFAC spokesman said in an email. A spokesman for the Justice Department declined to comment.

British American Tobacco operates in a number of countries that are subject to various sanctions, including Cuba and through a non-U.S. subsidiary, Iran. The U.S. has sanctions restrictions against both Cuba and Iran.

The company previously disclosed a continuing investigation by the U.K.'s Serious Fraud Office for alleged corruption, the company said in its annual report. The SFO opened a probe into the business conduct of British American Tobacco, its subsidiaries and associated individuals, the company said in August 2017.

British American Tobacco said it is investigating allegations of misconduct through external legal advisers and is cooperating with the SFO's investigation.

The SFO didn't immediately respond to a request for comment.

Write to Mengqi Sun at mengqi.sun@wsj.com

(END) Dow Jones Newswires

April 15, 2020 19:57 ET (23:57 GMT)

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