State Department Increases Penalties for Arms Export Control Act Violations

The State Department is increasing civil monetary penalties for violations of the Arms Export Control Act to account for inflation, it said in a notice published in the March 19 Federal Register. For violations of AECA Section 38(e) (control of arms exports and imports) the maximum penalty will rise to $1,163,217 (from $1,134,602). Penalties for incentive payments in offset agreement violations under Section 39A(c) will rise to the greater of $845,764 or five times the payment, up from $824,959 or five times the payment; and penalties for transactions with countries supporting acts of terrorism under Section 40(k) will rise to $1,006,699, from $981,935.