Raytheon parent to pay $200M in fines, remediation over export control violations
By 
Aaron Nicodemus2024-09-05T12:00:00
RTX Corp., the parent company of Raytheon, agreed to pay $200 million in fines and remediation to address hundreds of export control violations that led to the disclosure of sensitive military secrets.
The consent agreement between RTX and the State Department, published Friday, resolves 750 violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR) by Raytheon and several subsidiaries that occurred from 2017-23.
RTX self-disclosed the violations, cooperated with the investigation, and implemented “numerous” compliance remediations to address many of the issues uncovered during the investigation, the State Department said in a press release. As part of its remediation plan, RTX will hire a special compliance officer to oversee the consent agreement.
THIS IS MEMBERS-ONLY CONTENT
You are not logged in and do not have access to members-only content.
If you are already a registered user or a member, SIGN IN now.
Related articles
-
PremiumRTX and Raytheon: A case study in juggling four compliance monitors
In October 2024, aerospace and defense company Raytheon and parent company RTX reached a $950 million settlement with U.S. government agencies to resolve multiple federal law violations. More significant than the criminal penalties were the four compliance monitorships that came with the agreements.
-
PremiumRaytheon parent RTX settles false claims, defective pricing, Qatar FCPA violations for $950M
The other shoe finally dropped for Raytheon and parent company RTX, as two U.S. regulators announced nearly $1 billion in penalties to settle defective pricing in defense contracts, false claims related to inflated prices on government contracts, and bribes paid to government officials in Qatar that violated the FCPA.
-
PremiumHow lax compliance led three defense companies to give military secrets to U.S. adversaries
There are dozens of ways foreign countries can get their hands on U.S. military secrets, including cyberhacking, espionage, theft, and more. But one increasingly concerning way has been through unintentional disclosures by trusted defense contractors, including Boeing, 3D Systems Corp., and RTX Corp., parent company of Raytheon.
More from Regulatory Enforcement
-
News BriefSEC’s Uyeda: ‘Enforcement is the wrong way’ to handle off-channel communications
The U.S. Securities and Exchange Commission’s Mark Uyeda told an audience of investment advisers that the SEC will no longer prioritize stand-alone enforcement actions for violations of the SEC’s rules on off-channel communications.
-
News BriefAdobe agrees to $150M settlement over alleged cancellation fee violations
Adobe agreed to a $150 million settlement with the U.S. Department of Justice over accusations that it concealed software termination fees and made it difficult for customers to cancel.
-
ArticleU.K. competition regulator ‘very likely’ to use new enforcement powers despite government’s pro-growth agenda
New powers granted to the U.K.’s main competition watchdog will result in greater scrutiny, tougher enforcement, and a stark warning for companies to review their sales and marketing promotions—especially since some practices have been pushed firmly into the spotlight thanks to legislation that came into effect last year.