A major defense tech contractor, RTX Corporation, has agreed to pay a $200 million settlement to resolve export violations with the U.S. Department of State.
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| The U.S. Department of State has reached a settlement with RTX Corporation for violating export control regulations. The company will pay a $200 million penalty and implement new compliance measures. Symbolic image |
Washington, DC, USA – August 30, 2024:
The U.S. Department of State has concluded a significant settlement with RTX Corporation, a major defense technology contractor, resolving allegations of 750 violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR), reads a release.
RTX has agreed to pay a civil penalty of $200 million, with half of the amount suspended on the condition that it is used to improve the company's compliance program. Additionally, RTX will be subject to increased oversight and audits for at least two years.
The Department of State found that RTX had exported defense articles to unauthorized destinations and failed to properly classify and authorize these exports. The company has admitted to the violations and has taken steps to rectify its compliance program.
This settlement highlights the importance of strict compliance with export control regulations and serves as a reminder to companies in the defense industry to ensure that their exports are authorized and conducted in accordance with the law.
The Department of State's investigation into RTX's export activities revealed a pattern of unauthorized shipments to countries that were not authorized to receive U.S. defense articles. These violations posed a significant risk to national security and could have had serious consequences if the defense articles had fallen into the wrong hands.
In addition to the unauthorized exports, RTX also failed to properly classify and authorize the export of certain defense articles. This oversight resulted in the shipment of items that were subject to export controls without the necessary permits.
The settlement with RTX is a significant development in the Department of State's efforts to enforce export control regulations and to protect U.S. national security. The substantial penalty imposed on RTX serves as a deterrent to other companies that may be considering violating these regulations.
The agreement also includes provisions that will require RTX to implement new compliance measures and to undergo increased oversight. These measures will help to ensure that the company is able to prevent future violations and to comply with export control regulations in the future.