PayPal has agreed to pay $7.7m (?5.1m) to the US government following claims it allowed payments that violated sanctions against Iran, Cuba and Sudan.
The US Treasury Department said the payment firm had failed to adequately screen and prevent transactions.
They included a $7,000 transaction from someone listed by the US government as being involved in the proliferation of weapons of mass destruction.
PayPal said it had improved the real-time scanning of payments.
In a statement, it said it had "voluntarily" reported to the Treasury's Office of Foreign Assets Control (Ofac) certain payments it had processed between 2009 and 2013.
Delays in scanning had allowed some prohibited payments to be processed, PayPal said.
"Since then, we've taken additional steps to support compliance with Ofac regulations with the introduction of real-time scanning of payments and improved processes," a PayPal representative told the BBC.
Under the settlement, PayPal did not admit or deny it had violated the sanctions.
I'm sure a lot of previous western 'leaders' fit that description including those of the US and UK...
The US Treasury Department said the payment firm had failed to adequately screen and prevent transactions.
They included a $7,000 transaction from someone listed by the US government as being involved in the proliferation of weapons of mass destruction.
PayPal said it had improved the real-time scanning of payments.
In a statement, it said it had "voluntarily" reported to the Treasury's Office of Foreign Assets Control (Ofac) certain payments it had processed between 2009 and 2013.
Delays in scanning had allowed some prohibited payments to be processed, PayPal said.
"Since then, we've taken additional steps to support compliance with Ofac regulations with the introduction of real-time scanning of payments and improved processes," a PayPal representative told the BBC.
Under the settlement, PayPal did not admit or deny it had violated the sanctions.
They included a $7,000 transaction from someone listed by the US government as being involved in the proliferation of weapons of mass destruction.
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