The U.S. Department of State 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 resolved multiple violations including:
- Unauthorized exports of defense articles resulting from the failure to establish proper jurisdiction and classification
- Unauthorized exports of defense articles, including classified defense articles
- Unauthorized exports of defense 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 Directorate of Defense Trade Controls (DDTC) authorizations
RTX disclosed the violations voluntarily and cooperated with the State Department's review.
Under the terms of the agreement, RTX will pay a penalty of $200M. $100 million will be suspended and used for remedial compliance measures to improve RTX's compliance program. RTX must also engage an external Special Compliance Officer to ensure compliance with the agreement for at least 24 months.
This settlement demonstrates the State Department's priorities in enforcing export controls and the importance of prioritizing compliance programs.
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