BAE Systems to pay $36m penalty after 104 violations of US arms export rules
Summary
BAE Systems will pay a $36 million fine for breaking U.S. arms export rules more than 100 times. The company shared technical data and defense-related information with several countries without proper permission and agreed to improve its compliance program as part of the settlement.Key Facts
- BAE Systems violated the U.S. Arms Export Control Act and International Traffic in Arms Regulations 104 times.
- Violations included unauthorized exports of technical data to countries such as China, Canada, the UK, Germany, Switzerland, Italy, France, and Indonesia.
- The company voluntarily disclosed all but one violation, which helped reduce the penalty.
- Half of the $36 million penalty ($18 million) was suspended on the condition it be used to improve BAE’s export compliance program.
- Violations included sending technical data about GPS-related printed wiring boards, explosive mixtures, and U.S. Navy destroyer information without proper licenses.
- A subcontractor also provided defense services without authorization multiple times.
- BAE Systems acknowledged weaknesses in its supply chain's understanding of export rules and faults in file transfer systems that failed to warn about export controls.
- The U.S. Department of State emphasized the importance of getting the correct authorization before exporting defense-related items and information.
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