Ddtc Consent Agreement

When assessing the sanction, DDTC took into account a number of mitigating factors such as the filing of VODs, the company`s agreement to pay the legal deadline, and self-initiated improvements to the compliance program during the DDTC audit. Nevertheless, DDTC also considered aggravating factors such as significant deficiencies in the compliance program and internal control; lack of ITAR expertise and management oversight during VSD periods; the lack of investigation, detection and disclosure of offences; the frequency and repetition of offences; and the inability to implement compliance measures presented by DDTC in VOD submissions. [1] An amount of $15,000,000 may be suspended provided that FLIR applies this amount to the corrective measures. DDTC may also suspend up to US$5,000,000 for corrective actions to comply with the agreement prior to approval. DDTC found that the VODs filed by L3Harris in response to DDTC`s disclosure were not mitigating, as they were produced in response to DDTC`s request. In comparison, those submitted by L3Harris for separate issues that were not initially addressed by DDTC were found to be mitigating. This is an interesting aspect of this consent agreement, as DDTC`s attitude could ultimately deter companies from making voluntary self-information after targeted disclosure. On September 19, 2019, the U.S. Directorate of Defense Trade Controls (“DDTC”) entered into a consent agreement with L3Harris Technologies, Inc. (“L3Harris”) for alleged violation of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (“ITAR”). L3Harris, an aerospace and defense company, allegedly committed offenses involving the unauthorized export of defense items and technical data, as well as failure to provide accurate and complete reports and license violations. [1] If you have any questions about consent agreements or about implementing or improving your company`s compliance program, please do not hesitate to contact our firm. Among the penalties for its 131 alleged violations, L3Harris faces a civil fine of $13 million, of which $6.5 million can be suspended if the company invests the money in accordance with the compliance cost correction agreement.

It is important to note that the penalties provided for in the agreement apply to the “zessiona and successor” of the company, which means that the terms of the consent agreement apply to the buyer, even if the company is sold or is part of a merger. . .