BAE Systems Pays $36 Million for US Export Violations
BAE Systems will pay a $36 million penalty after the U.S. Department of State found 104 violations of arms export control laws.
The United States Department of State announced an administrative settlement on Thursday requiring BAE Systems to pay a $36 million civil penalty. The settlement resolves 104 violations of the U.S. Arms Export Control Act and International Traffic in Arms Regulations.
The breaches involved the unauthorized export of technical data to China, Canada, the United Kingdom, and Germany. Additionally, a subcontractor provided unauthorized defense services in Italy, France, and Indonesia, and the company accidentally exported a military gas-turbine engine control system to Switzerland. The Department of State attributed the failures to a supply chain team that did not fully understand export regulations and file transfer networks that lacked necessary warnings.
BAE Systems voluntarily disclosed most of the violations. As a result, the government suspended half of the penalty, allowing the company to use $18 million to enhance its internal compliance program.
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