Airbus Operations Limited (AOL) has paid more than £6.4 million to HM Revenue and Customs (HMRC) after admitting multiple breaches of Strategic Export Controls.  

The payment represents the highest compound settlement ever reached by HMRC for strategic export offences.

AOL announced the breach last night (July 29) in its quarterly earning notes and details have also been published on GOV.UK.

The company failed to keep records of any tangible or intangible export or transfer of controlled technology over a sustained period.

AOL self-reported the breaches to HMRC and fully cooperated with the investigation.

Edwige Hill, Deputy Director in HMRC's Fraud Investigation Service, said:  

"The UK operates a strict licensing regime to uphold the UK's Export Control regime to ensure military equipment does not fall into the wrong hands.

"We use a range of powers to ensure effective controls and enforcement on military goods, which contributes to the UK's national security. This settlement shows we will not hesitate to take action."

The breaches made by AOL included:

• Article 29(2)(a-g) on multiple occasions for failing to keep accurate records of transfers of controlled technology as per the conditions of three of their Open General Export Licences (OGELs)
• Article 29(3) on multiple occasions for failing to keep registers in relation to their OGELs
• Article 29(2)(i) on multiple occasions for failing to keep accurate records contrary to the conditions of one of their OGELs
• Standard Individual Export Licence – on one occasion relating to a failure of licence conditions

• The United Kingdom operates an export control licensing regime for certain strategic goods such as military items, dual use items and goods that can be used in Weapons of Mass Destruction programmes. The licensing regime is part of an international framework and is based upon various international agreements. 
  
  
• A compound settlement is the means where, through payment of a sum of money, HMRC may offer to settle alleged Strategic Export offences committed under the Customs and Excise Management Act and the Export Control Order, out of court. This saves time and money – both for the offender and HMRC – by avoiding the need for legal proceedings. HMRC will only offer a compound settlement where it is believed there is sufficient evidence to prosecute.
  
  
• Last month Petrofac Facilities Management Limited (PFML) became the first company to be publicly named by HMRC for accepting such a penalty.  PFML self-reported the breaches to HMRC and fully cooperated with the investigation.  Naming the company marks a shift in how HMRC handles compound settlements in relation to strategic exports.  The new approach will improve transparency and ensure greater consistency with other UK law enforcement bodies. HRMC