The U.S. Department of State has imposed a $200 million fine on defense contractor RTX Corporation (formerly Raytheon Technologies) for unauthorized exports of sensitive defense technology to several countries, including China, Russia, and Iran. The fine is part of a settlement addressing 750 violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR) that occurred between August 2017 and September 2023.
The violations involved the improper export of classified defense articles, including technical data related to advanced U.S. military aircraft such as the F-22 and F-35 fighter jets and the B-2 Spirit bomber. These breaches occurred as RTX employees traveled to proscribed destinations, including China and Russia, carrying classified information without proper authorization.
RTX voluntarily disclosed the violations to the State Department and has cooperated with the subsequent investigation. As part of the settlement, $100 million of the fine will be suspended, provided RTX invests that amount in remedial compliance measures approved by the State Department.
In addition to the financial penalty, RTX will be required to engage an external Special Compliance Officer for at least 24 months to oversee the implementation of the Consent Agreement, which includes conducting external audits of the company’s compliance with ITAR.
RTX acknowledged the settlement, noting that it aligns with their expectations as disclosed in their second-quarter earnings report in July 2024. The company has already begun implementing changes to prevent future violations and safeguard U.S. military secrets.
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