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The US Department of State has announced a US$200 million settlement with RTX Corporation (Raytheon) to resolve alleged export violations.
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The Department of State and RTX reached the administrative settlement following an extensive compliance review by the Office of Defense Trade Controls Compliance in the department’s Bureau of Political-Military Affairs.
The resolution included 750 violations of the Arms Export Control Act and the International Traffic in Arms Regulations (ITAR), the Office of the Spokesperson said in a statement published on 30 August.
“The administrative settlement between the Department of State and RTX, concluded pursuant to ITAR § 128.11, addresses RTX’s unauthorised exports of defence articles resulting from the failure to establish proper jurisdiction and classification; unauthorised exports of defence articles, including classified defence articles; unauthorised exports of defence articles by employees via hand-carry to proscribed destinations listed in 22 C.F.R. 126.1; and violations of terms, conditions, and provisos of DDTC authorisations,” the US Department of State said.
“RTX disclosed all of the alleged violations voluntarily. RTX also cooperated with the department’s review of this matter and has implemented numerous improvements to its compliance program since the conduct at issue.
“Under the terms of the 36-month consent agreement, RTX will pay a civil penalty of $200 million. The department has agreed to suspend $100 million of this amount on the condition that the funds will be used for the department-approved consent agreement remedial compliance measures to strengthen RTX’s compliance program.
“In addition, for an initial period of at least 24 months, RTX will engage an external special compliance officer to oversee the consent agreement, which will also require at least one external audit of its ITAR compliance program and implementation of additional compliance measures.
“This settlement demonstrates the Department’s role in furthering the national security and foreign policy of the United States by controlling the export of defenCe articles. The settlement also highlights the importance of exporting defence articles only pursuant to appropriate authorisation from the Department.”
