The L3Harris Approval Agreement demonstrates the importance of a strong compliance program to prevent export violations and act as a mitigating factor in cases where an unintentional error occurs despite the existence of a well-maintained compliance program. As the L3Harris agreement makes clear, VODs alone cannot necessarily mitigate alleged offences in all circumstances. Businesses must take the necessary steps to comply with applicable rules and be conscientiously competent to report errors or errors. Otherwise, approval agreements can serve as a costly and public reminder of a company`s compliance errors. What is important is that in some cases, consent agreements may lead DDTC to revoke a company`s privilege to export defence items, a sanction often worse than a fine. In addition, approval agreements will be published and published on DDTC`s website, which will result in significant reputational damage, in addition to the financial burden. Airbus will also enter into a deferred agreement with the Department of Justice on the Foreign Corrupt Practice Act (“FCPA”) for criminal information filed on January 28, 2020, and is expected to pay more than $517 million. The FCPA royalty was born out of Airbus` program of offering and paying bribes to foreign officials, including Chinese officials, to obtain and retain transactions, including aircraft sales contracts.  See In the Matter of: L3Harris Technologies, Inc., Order, United States Department of State Bureau of Political-Military Affairs (September 19, 2019), www.pmddtc.state.gov/sys_attachment.do?sysparm_referring_url=tear_off&view=true&sys_id=43579882db44c0107ede365e7c9619cc. Flir was also unable to find a corporate reorganization in new licenses and existing licenses and agreements.
As a result, FLIR exported defence items and provided defence services in licenses and agreements that do not reflect the role of the new subsidiary in the event of a violation of ITAR. What is an approval agreement and why is it important? An approval agreement outlines “measures to improve compliance programs.”  This is not an admission of guilt, but a comparison between the government and the company. Each approval agreement is different, depending on the dissemination of the alleged violations committed by the company and whether the entity has compliance programs.