Huawei’s global chief financial officer was arrested in Vancouver, B.C., on Dec. 1 on suspicion of violation of U.S. sanctions against Iran, according to a report in The Globe and Mail. Huawei confirmed the detention. Canadian law enforcement arrested Wanzhou Meng at the behest of American authorities, who are investigating allegations that the Chinese-owned Huawei has shipped U.S.-made products to Iran that are prohibited by sanctions and export laws. Huawei makes telecom equipment and personal electronics sold worldwide.
The news of the arrest broke today. The Canadian Justice Department told The Globe and Mail in a statement that “Wanzhou Meng was arrested in Vancouver on December 1. She is sought for extradition by the United States, and a bail hearing has been set for Friday.”
Reports appeared in April 2018 that federal prosecutors in New York had an open probe into whether Huawei had violated U.S. restrictions against Iran.
In a statement to Fortune, a Huawei spokesperson confirmed that Meng was detained, and said that she “faces unspecified charges in the Eastern District of New York.” Huawei said it has received “very little information regarding the charges and is not aware of any wrongdoing by Ms. Meng.” The company also noted, “Huawei complies with all applicable laws and regulations where it operates, including applicable export control and sanction laws and regulations of the UN, US and EU.”
Huawei didn’t immediately reply to a request for comment from Fortune. The company previously said that it complies with all applicable laws everywhere it operates, “including the applicable export control and sanction laws and regulations of the UN, US, and EU.”
The Justice Department statement also noted that Meng requested a publication ban, which a Canadian court can order to prohibit publishing within the country certain details of proceedings and trials until they are complete.
Around the time word of the Huawei probe broke earlier in 2018, Chinese handset and telecom maker ZTE faced a ban on purchasing U.S.-made parts after failing to meet the terms of a 2017 settlement over ZTE’s violation of U.S. sanctions against both Iran and North Korea. While the company paid a $900 million fine in 2017 after a five-year investigation uncovered its violations, and agreed to make changes, the company awarded bonuses to some implicated employees among other issues. ZTE paid an additional $1.4 billion and fired employees to have the ban lifted.
