Bureau of Political-Military Affairs; Rescission of Policy of Denial Concerning BAE Systems Saudi Arabia Limited (BAES SAL) a Subsidiary of BAE Systems plc Under the International Traffic in Arms Regulations, 30783 [2020-10863]

Download as PDF Federal Register / Vol. 85, No. 98 / Wednesday, May 20, 2020 / Notices DEPARTMENT OF STATE [Public Notice 11119] Bureau of Political-Military Affairs; Rescission of Policy of Denial Concerning BAE Systems Saudi Arabia Limited (BAES SAL) a Subsidiary of BAE Systems plc Under the International Traffic in Arms Regulations ACTION: Notice. 17:51 May 19, 2020 R. Clarke Cooper, Assistant Secretary, Bureau of PoliticalMilitary Affairs, Department of State. [FR Doc. 2020–10863 Filed 5–19–20; 8:45 am] Notice is hereby given that the Department of State has rescinded the policy of denial concerning BAES SAL, a subsidiary of BAE Systems plc, included in Federal Register notice of May 23, 2011 (76 FR 29814). DATES: This notice is effective on May 20, 2020. FOR FURTHER INFORMATION CONTACT: Jae Shin, Director, Office of Defense Trade Controls Compliance, Bureau of Political-Military Affairs, Department of State (202) 632–2107. SUPPLEMENTARY INFORMATION: On March 2, 2010, a judgment was filed against BAE Systems plc (BAES) for conspiring to commit offenses against the United States in violation of 18 U.S.C. 371, including conspiring to violate the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR). Subsequent to this conviction, the Department and BAES agreed to enter into a Consent Agreement in order to settle and dispose of all potential civil charges and penalties. Upon signature of the agreement in 2011, BAES was statutorily debarred, and a rescission of debarment was concurrently issued. However, the Department chose to impose a policy of denial on the business units responsible for the majority of the violations: BAE Systems CS&S International, Red Diamond Trading Ltd., and Poseidon Trading Investments Ltd., including their divisions and business units, and successor entities. The Department announced the policy of denial by Federal Register notice in May 2011 (76 FR 29814, May 23, 2011). According to BAES, sometime after the announcement of the policy of denial, BAE Systems CS&S International, Red Diamond Trading Ltd., and Poseidon Trading Investments Ltd. have ceased to exist. However, BAE SAL is a successor entity to BAE Systems CS&S International and remains subject to the policy of denial. In response to a request from BAES for rescission of this policy of denial, the Department has conducted a thorough review of the circumstances SUMMARY: VerDate Sep<11>2014 surrounding the conviction and the imposition of the policy of denial. The Department has determined that it is in the national security and foreign policy interests of the United States to rescind the policy of denial concerning BAE SAL, including its divisions and business units, and successor entities. Jkt 250001 BILLING CODE 4710–25–P DEPARTMENT OF STATE [Public Notice 11118] Statutory Debarment Under the Arms Export Control Act and the International Traffic in Arms Regulations ACTION: Notice. Notice is hereby given that the Department of State has imposed statutory debarment under the International Traffic in Arms Regulations (‘‘ITAR’’) on persons convicted of violating, or conspiracy to violate, Section 38 of the Arms Export Control Act (AECA). DATES: Debarment imposed as of May 20, 2020. FOR FURTHER INFORMATION CONTACT: Jae Shin, Director, Office of Defense Trade Controls Compliance, Bureau of Political-Military Affairs, Department of State (202) 632–2107. SUPPLEMENTARY INFORMATION: Section 38(g)(4) of the AECA, 22 U.S.C. 2778(g)(4), restricts the Department of State from issuing licenses for the export of defense articles or defense services where the applicant, or any party to the export, has been convicted of violating certain statutes, including section 38 of the AECA. The statute permits the President to make certain exceptions on a case-by-case basis. Section 127.7(b) of the ITAR also provides for ‘‘statutory debarment’’ of any person who has been convicted of violating or conspiring to violate the AECA. Under this policy, persons subject to statutory debarment are prohibited from participating directly or indirectly in any activities that are regulated by the ITAR. Statutory debarment is based solely upon conviction in a criminal proceeding, conducted by a United States court, and as such the administrative debarment procedures outlined in Part 128 of the ITAR are not applicable. SUMMARY: PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 30783 It is the policy of the Department of State that statutory debarment lasts for a three year period following conviction. Unless export privileges are reinstated, however, the person remains debarred. Reinstatement is not automatic, and in all cases the debarred person must submit a request for reinstatement to the Department of State and be approved for reinstatement before engaging in any activities subject to this subchapter. Department of State policy permits debarred persons to apply to the Director, Office of Defense Trade Controls Compliance, for reinstatement beginning one year after the date of the debarment. Any decision to grant reinstatement can be made only after the statutory requirements of Section 38(g)(4) of the AECA have been satisfied. Certain exceptions, known as transaction exceptions, may be made to this debarment determination on a caseby-case basis. However, such an exception would be granted only after a full review of all circumstances, paying particular attention to the following factors: Whether an exception is warranted by overriding U.S. foreign policy or national security interests; whether an exception would further law enforcement concerns that are consistent with the foreign policy or national security interests of the United States; or whether other compelling circumstances exist that are consistent with the foreign policy or national security interests of the United States, and that do not conflict with law enforcement concerns. Even if exceptions are granted, the debarment continues until subsequent reinstatement. Pursuant to Section 38(g)(4) of the AECA and Section 127.7(c) of the ITAR, the following persons, having been convicted in a U.S. District Court, are statutorily debarred as of the date of this notice (Name; Date of Judgment; Judicial District; Case No.; Month/Year of Birth): (1) Asad-Ghanem, Rami Najm (aka Ghanem, Rami Najm); August 19, 2019; Central District of California; 2:15–cr–00704; June 1966. (2) Boyko, Gennadiy; December 7, 2018; Northern District of Georgia; 1:16–cr–00338; February 1970. (3) Browning, Scott Douglas; August 9, 2019; Eastern District of North Carolina; 5:18–cr–00036; April 1977. (4) Brunt, Paul Stuart; March 1, 2019; Western District of Washington; 2:18–cr– 00025; February 1966. (5) Chehade, Walid; May 8, 2019; Western District of Michigan; 1:17–cr–00263; July 1981. (6) Dequarto, Dominick; December 5, 2018; Middle District of Florida; 8:18–cr–00320; December 1965. E:\FR\FM\20MYN1.SGM 20MYN1

Agencies

[Federal Register Volume 85, Number 98 (Wednesday, May 20, 2020)]
[Notices]
[Page 30783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10863]



[[Page 30783]]

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DEPARTMENT OF STATE

[Public Notice 11119]


Bureau of Political-Military Affairs; Rescission of Policy of 
Denial Concerning BAE Systems Saudi Arabia Limited (BAES SAL) a 
Subsidiary of BAE Systems plc Under the International Traffic in Arms 
Regulations

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Notice is hereby given that the Department of State has 
rescinded the policy of denial concerning BAES SAL, a subsidiary of BAE 
Systems plc, included in Federal Register notice of May 23, 2011 (76 FR 
29814).

DATES: This notice is effective on May 20, 2020.

FOR FURTHER INFORMATION CONTACT: Jae Shin, Director, Office of Defense 
Trade Controls Compliance, Bureau of Political-Military Affairs, 
Department of State (202) 632-2107.

SUPPLEMENTARY INFORMATION: On March 2, 2010, a judgment was filed 
against BAE Systems plc (BAES) for conspiring to commit offenses 
against the United States in violation of 18 U.S.C. 371, including 
conspiring to violate the Arms Export Control Act (AECA) and the 
International Traffic in Arms Regulations (ITAR). Subsequent to this 
conviction, the Department and BAES agreed to enter into a Consent 
Agreement in order to settle and dispose of all potential civil charges 
and penalties.
    Upon signature of the agreement in 2011, BAES was statutorily 
debarred, and a rescission of debarment was concurrently issued. 
However, the Department chose to impose a policy of denial on the 
business units responsible for the majority of the violations: BAE 
Systems CS&S International, Red Diamond Trading Ltd., and Poseidon 
Trading Investments Ltd., including their divisions and business units, 
and successor entities. The Department announced the policy of denial 
by Federal Register notice in May 2011 (76 FR 29814, May 23, 2011).
    According to BAES, sometime after the announcement of the policy of 
denial, BAE Systems CS&S International, Red Diamond Trading Ltd., and 
Poseidon Trading Investments Ltd. have ceased to exist. However, BAE 
SAL is a successor entity to BAE Systems CS&S International and remains 
subject to the policy of denial.
    In response to a request from BAES for rescission of this policy of 
denial, the Department has conducted a thorough review of the 
circumstances surrounding the conviction and the imposition of the 
policy of denial. The Department has determined that it is in the 
national security and foreign policy interests of the United States to 
rescind the policy of denial concerning BAE SAL, including its 
divisions and business units, and successor entities.

R. Clarke Cooper,
Assistant Secretary, Bureau of Political-Military Affairs, Department 
of State.
[FR Doc. 2020-10863 Filed 5-19-20; 8:45 am]
 BILLING CODE 4710-25-P