The U.S. State Department has reached a settlement with RTX Corporation to resolve 750 violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR).
The settlement resolves multiple violations, including:
- Unauthorized export of defense articles due to failure to establish proper jurisdiction and classification
- Unauthorized export of defense articles, including classified defense articles
- The unauthorized hand-carry export of defense articles by an employee to a prohibited destination listed in 22 CFR 126.1; and
- Violation of the terms, conditions, and riders of a Directorate of Defense Trade Controls (DDTC) authorization
RTX voluntarily disclosed the violations and cooperated with the State Department’s review.
Under the terms of the agreement, RTX will pay a $200 million fine. $100 million of that will be suspended and used for remedial compliance measures to improve RTX’s compliance program. RTX must also hire an external special compliance officer to ensure compliance with the agreement for at least 24 months.
This settlement reflects the State Department’s priorities in enforcing export controls and the importance of prioritizing compliance programs.
Diaz Trade Law can help you develop a new export compliance program for your business, or review and update an existing program. To learn more about how we can help, please contact us at info@diaztradelaw.com or call 305-456-3830.
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