Slack Discloses Potential Sanctions Violations
Slack Technologies, an American software company that operates a business collaboration app, said it may have violated U.S. sanctions laws. The company “recently” submitted an initial voluntary self-disclosure to the Office of Foreign Assets Control after discovering customer accounts that may have used its products and services “for the benefit” of sanctioned people, Slack said in a June 3 Securities and Exchange Commission filing.
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Slack didn't provide more details on the potential violations but said some of its services and “business activities” are subject to U.S. and European export control and sanctions laws. The company also said its products are limited in some countries due to encryption technology import regulations. Slack may be fined or face other penalties stemming from its self-disclosure, the filing said, including loss of export privileges or reputational harm. “Although we take precautions to prevent transactions with sanction targets, we cannot guarantee that such precautions will be fully effective and we could inadvertently provide Slack to persons prohibited by U.S. and E.U. sanctions,” the company said, “which could result in negative consequences to us, including government investigations, penalties, and harm to our reputation.” A Slack spokesperson declined to comment.