Oregon company settles alleged breaches of US export laws

Oregon-based FLIR Systems, which produces infrared cameras and thermal imaging systems, has agreed to pay $30m to settle claims that it broke US law by the unauthorised export of certain military items.

The company was alleged by the US Department of State to have violated the International Traffic in Arms Regulations (‘ITAR’) and the Arms Export Control Act (‘AECA’) by exporting defence articles, including technical data, and providing defence services to dual and ‘third country’ nationals of Iran, Iraq, Lebanon and Cuba. It was also accused of violating the terms of provisos or other limitations of licence authorisations and failing to keep proper records in accordance with the ITAR.

The company has entered into a four-year consent agreement with the US Department of State under which it will pay a civil penalty of $30m, with $15m suspended on the condition that the funds are used for implementing remedial compliance measures. These include the hire of an external designated official to oversee the consent agreement, the conduct of two external audits, and improvements to its compliance programme.

‘We accept responsibility for our actions leading to these penalties,’ said FLIR Systems Chief Executive Officer James Cannon, adding that the company is ‘fully committed to complying with US export control laws.’

For the US Department of State’s press release see:
https://www.state.gov/r/pa/prs/ps/2018/04/281211.html