BAE Systems to pay $36m penalty after 104 violations of US arms export rules
BAE Systems’ US arm has agreed to pay a $36m (£26.7m) civil penalty after US authorities found 104 breaches of arms export regulations. The settlement underlines the scrutiny facing defence firms handling sensitive military technology, particularly where data may be sent overseas without the required authorisation.
Most alleged breaches were voluntarily disclosed by BAE, helping to limit the penalty; $18m has been suspended provided it is spent improving compliance. Incidents included sending military GPS-related technical data to China, Canada and the UK, data concerning a US navy destroyer to Germany, and an unauthorised military engine-control-system export to Switzerland; a subcontractor also provided unapproved defence services in several countries.
- BAE’s US arm will pay $36m over 104 export-control breaches.
- Sensitive military data was sent to several countries without proper approval.
- Half the penalty is suspended for compliance improvements.
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