The U.S. Department of State has concluded an administrative settlement with RTX Corporation (RTX) to resolve 750 violations of the Arms Export Control Act (AECA), 22 U.S.C. § 2751 et seq., and the International Traffic in Arms Regulations (ITAR), 22 C.F.R. parts 120-130. The Department of State and RTX reached this settlement following an extensive compliance review by the Office of Defense Trade Controls Compliance in the Department’s Bureau of Political-Military Affairs.
The administrative settlement between the Department of State and RTX, concluded pursuant to ITAR § 128.11, addresses RTX’s 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 DDTC authorizations.
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 defense articles. The settlement also highlights the importance of exporting defense articles only pursuant to appropriate authorization from the Department.
For additional information, please contact the Bureau of Political-Military Affairs Office of Congressional and Public Affairs at [email protected].
Official news published at https://www.state.gov/u-s-department-of-state-concludes-200-million-settlement-resolving-export-violations-by-rtx-corporation/
