HEXDI Integrates FLIR Systems Inc. Consent Agreement

Pursuant to the terms of an April 2018 Consent Agreement entered into by the Department of State and FLIR Systems Inc. (FLIR), the Department of State and FLIR agreed to settle administrative proceedings involving multiple alleged violations of the Arms Export Control Act. [F/N 1] As part of the Consent Agreement, FLIR agreed to institute a variety of remedial measures and to pay a civil penalty of $30 million dollars, $15 million of which is suspended for certain remedial compliance costs.

HEXDI has integrated 28 additional government standards reflected in the remedial measures contained in the FLIR Consent Agreement, which are now included in HEXDI modules 1 through 12.  Many of these standards appeared in previous Department of State Consent Agreements, which are already integrated in HEXDI.

Of note in the FLIR Consent Agreement, the Department of State is continuing its more recent trend of requiring administrative enforcement targets to implement automated export compliance systems.  To address this requirement, FLIR agreed to implement a comprehensive automated export compliance system to strengthen its internal controls for ensuring compliance with the Arms Export Control Act and the International Traffic in Arms Regulations. According to the Consent Agreement, this system shall track the decision process from the initiation to conclusion of a request for export, reexport or retransfer authorization, and cover the initial identification of all technical data and technical assistance in any form proposed to be disclosed to any foreign persons.

[F/N 1] See DDTC Consent Agreement, FLIR Systems Inc. (04/24/18), available at https://www.state.gov/r/pa/prs/ps/2018/04/281211.htm

This case is also indexed in HEXDI's Cost of Non-Compliance dataset, alongside other public export-control and sanctions enforcement actions.

The above is not intended as an exhaustive list of restrictions that may apply to a particular transaction nor advice for a specific transaction because the specifics of an individual case may implicate application of other U.S. laws as well as foreign laws that carry added or different requirements. In addition, U.S. export control and sanctions laws are frequently subject to change. Such changes can affect the continued validity of the information above.