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]
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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the Department of State has rescinded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