California Web Design Company Submits Disclosure to OFAC
A California-based digital interface design company said in its initial public offering this month that it may have violated U.S. sanctions.
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Figma -- which allows users to create and share designs for websites, mobile apps and other digital products -- submitted a voluntary self-disclosure to the Office of Foreign Assets Control after saying it may have “inadvertently allowed some access to our platform and associated products” in a way that breached sanctions laws. Some of its users or customers may have been located in embargoed or sanctioned countries, it said in an SEC filing. Figma said its disclosure is under review by OFAC.
Since “becoming aware” of the possible violations, Figma said it has put in place more compliance safeguards, including “measures designed to prevent our platform and products from being accessed or used in violation of U.S. economic and trade sanctions laws.” The company said it “will continue to consider enhancements to our internal controls and monitor our compliance with such laws and regulations, but there can be no assurance that we will not encounter compliance issues in the future.”
If OFAC determines it violated sanctions, Figma said it could face “substantial fines and penalties for us and for individuals working for us,” as well as reputational harm, or be unable to access certain markets.
“No loss has been recognized in our financial statements contained herein for any loss contingency relating to the pending OFAC enforcement matter, as we believe it is not probable a loss will be incurred and the range of a possible loss is not yet estimable,” it said.