Department of State concludes $51M settlement with Boeing

The U.S. Department of State has concluded an administrative settlement with The Boeing Company to resolve 199 violations of the Arms Export Control Act, or AECA, 22 U.S.C. Section 2751 et seq., and the International Traffic in Arms Regulations, or ITAR, 22 CFR parts 120-130. The Department of State and Boeing reached this settlement following an extensive compliance review by the Office of Defense Trade Controls Compliance in the Department’s Bureau of Political-Military Affairs. “All of the alleged violations were voluntarily disclosed, and a considerable majority predate 2020. Boeing cooperated with the Department’s review of this matter and has incorporated numerous improvements to its compliance program since the conduct at issue. Under the terms of the 36-month Consent Agreement, Boeing will pay a civil penalty of $51 million. The Department has agreed to suspend $24 million of this amount on the condition that the funds will be used for the Department-approved Consent Agreement remedial compliance measures to strengthen Boeing’s compliance program. In addition, for an initial period of at least 24 months, Boeing will engage an external Special Compliance Officer to oversee the Consent Agreement, which will also require two external audits of its ITAR compliance program and implement additional compliance measures,” the department stated.