Berkshire Discloses Subsidiary's Iran Ties, Opens Internal Probeby
Warren Buffett’s Berkshire Hathaway Inc. notified overseers including the U.S. Treasury Department that a foreign subsidiary made sales through a third-party distributor to customers in Iran.
The customers may “meet the definition of the ‘Government of Iran,”’ under U.S. law, according to a regulatory filing Friday from Omaha, Nebraska-based Berkshire. Iran is among nations that were slapped with trade sanctions under a U.S. blacklist for countries with terrorism ties.
Revenue from the transactions, which took place from June 2013 through November of last year, was about $45,000, and net income from the sales was roughly $2,500, according to a passage in Berkshire’s quarterly filing that didn’t name the subsidiary involved.
Berkshire will submit additional information to regulators after completing an internal investigation, “which we are conducting with the assistance of outside counsel,” according to the filing. “We intend to cooperate fully” with government agencies, the company said.