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The US State Department has BAE Systems Inc has reached a settlement. over breaches in ITAR regulations. Under ITAR § 128.11, BAE will pay a civil penalty of $36million to address 104 violations, including the unauthorised export of technical data to multiple countries, including China. This is the second published ITAR breach of companies in 2026 that have sent technical data to China, the first being a $36million settlement reached with General Electric.
The BAE Consent Agreement is a must-read for UK defence contractors.
https://lnkd.in/eNb799Hi
The Remedial Measures identified in the Consent Agreement require BAE, amongst other things, to conduct its business in full compliance with the US Arms Export Controls Act (AECA) and ITAR; to ensure, in particular, that there are no unauthorized exports, reexports, retransfers, temporary imports, or brokering of ITAR-controlled defense articles; to appoint a designated Official dedicated to ITAR compliance and shall recommend its preferred candidate to the US Office of Defense Trade Controls Compliance; strengthen compliance policies, procedures and training; implement an automated export compliance system and Liz Sandwith CFIIA, to engage outside audit, approved by the DTCC, to audit AECA and ITAR compliance.
The Agreement is very strong in its wording regarding remedial actions and makes clear that in this case, there will be no disbarment of BAE, but non-compliance could result in disbarment.
This case raises questions about the relationship between the AECA, ITAR, and DFARS, specifically the CMMC program. The security of Technical data is governed by DFARS 252.204-7012, which has been in force since 2016 and applies to United States Department of War contracts. Controlled technical data can reside in ITAR data and in this instance
https://lnkd.in/euxF27rA
@Parava Security Solutions
#itar #aeca #controlledtchnicalinformation #cmmc
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