Canada arrests CFO of China's Huawei for possible violation of Iran sanctions

Canada arrests CFO of China's Huawei for possible violation of Iran sanctions

Meng "was arrested in Vancouver on December 1", a statement by Canada's ministry of justice said.

Canadian authorities have arrested Huawei's chief financial officer, Wanzhou Meng.

In 2012, the House of Representatives released a report warning Huawei poses a national security threat to the US, and American companies and its government should avoid doing business with the company.

Justice Department spokesman Ian McLeod said Meng Wanzhou was detained in Vancouver, British Columbia, on Saturday.

Further details on the allegations of sanctions busting against Meng are yet to be revealed because of a gag order reportedly sought by her.

Huawei did not respond to a request for comment at the time of publication.

However, Trump's administration has been cracking down on Chinese involvement in the American tech sphere, including with draft legislation barring the sale of national security-sensitive technology to China and blocking government or contractors from buying telecommunications equipment and services from both Huawei and ZTE. Its devices have come under scrutiny from U.S. authorities over spying fears, and the arrest of its CFO has the potential to further inflame tensions between the two countries amid a mounting trade war.

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The investigation, launched by the Justice Department in 2016, alleges that Huawei had been shipping US origin products to Iran and the other countries in violation of USA export and sanction laws.

Meng, daughter of the founder of the massive company, is being held under a provisional arrest warrant issued under the Extradition Act.

In 2007, Ms. Meng served as a board secretary for a Huawei holding company that owned Skycom Tech, a Hong Kong-based company with business in Iran and employees who said they worked for "Huawei-Skycom", according to a person familiar with the matter.

Huawei said it had little information about the charges and was "not aware of any wrongdoing by Ms Meng". "The company believes the Canadian and U.S. legal systems will ultimately reach a just conclusion".

As of August 2018, USA federal government agencies are barred from purchasing Huawei equipment. BT still planned to use Huawei phone mast antennas and some other products from Huawei, it said.

The country has already been warned by United States senators against the use of Huawei in its telecommunications networks. Huawei has denied the links.

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