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BAE Systems to pay $36 million US penalty for arms export breaches
The US Department of State said the settlement resolves 104 violations, including unauthorized technical data exports to multiple countries such as China.
BAE Systems will pay a $36 million civil penalty after the US Department of State reached an administrative settlement with the company’s US arm over alleged breaches of US arms export rules, according to the Guardian Business.
The settlement addresses 104 violations of the Arms Export Control Act and the International Traffic in Arms Regulations, including unauthorized exports of technical data to multiple countries, such as China, and violations tied to directorate of defense trade controls authorizations involving various countries.
The company voluntarily disclosed all but one of the alleged violations, a move that helped it avoid a higher penalty. The state department also agreed to suspend half of the penalty on condition that $18 million be used to strengthen BAE’s compliance program.
The Guardian Business said BAE was accused of sending technical data related to printed wiring boards for use in global positioning system, or GPS, equipment to a manufacturer in China in December 2023, with the state department citing gaps in the company’s export control understanding and file transfer warnings. BAE said it had thoroughly cooperated and remained committed to full compliance with export control laws.