Sony Corp said some dealers in Dubai resold about $12.8 million worth of its video equipment and medical instruments to Iranian ministries, in a move that could possibly attract U.S. penalties.
The dealers resold some equipment to Iran's broadcasting unit and health ministry, and some also planned to sell equipment to the information technology department of the country's police, the firm said in a filing with the U.S. regulator.
"If the relevant authorities were to impose penalties or sanctions against Sony, the impact of such sanctions could be material," the company said in Thursday's filing with the U.S. Securities and Exchange Commission.
Sony said it followed policies and procedures designed to keep transactions with Iran in line with applicable economic sanctions laws, but there could be no assurance such measures would be effective.
It listed four Iran-related transactions, in three of which it made net profit of less than $500,000, while taking a loss in the fourth, but did not say how much.
Washington has been cracking down on companies accused of evading Iran sanctions.
The United States and Europe have imposed sanctions against specific Iranian individuals, state institutions or companies in so far unavailing efforts to persuade Tehran to rein in enrichment of uranium and open up to U.N. inspectors in exchange for phased relief from tightening financial isolation.
Western nations believe the Islamic Republic is attempting to develop the means to build atomic bombs. Iran says the nuclear programme is solely for electricity generation and medical uses.
Sony said it may conduct additional future sales in Iran through third-party owned dealers or distributors, which may require disclosure under U.S. laws.
"Sony intends to conduct any such sales in accordance with applicable law," it added.
(Reporting by Sakthi Prasad in Bangalore; Editing by Clarence Fernandez)
(This story is refiled to correct net profit in fifth paragraph to less than $500,000, not $500 million)