Airbus Operations Limited (AOL) has paid more than £6.4 million to HM Revenue and Customs (HMRC) following its admission of multiple breaches of Strategic Export Controls. This payment represents the highest compound settlement ever reached by HMRC for strategic export offences.
The company failed to maintain records of any tangible or intangible export or transfer of controlled technology over a sustained period. AOL self-reported these breaches to HMRC and cooperated fully with the subsequent investigation.
Edwige Hill, Deputy Director in HMRC’s Fraud Investigation Service, stated that the UK operates a strict licensing regime to ensure military equipment does not fall into the wrong hands. She added that HMRC uses various powers for effective controls and enforcement on military goods, contributing to national security.
The breaches by AOL included multiple failures to keep accurate records of controlled technology transfers, as per the conditions of three Open General Export Licences (OGELs), and failing to keep registers related to their OGELs. There was also a failure of licence conditions relating to a Standard Individual Export Licence.
A compound settlement allows HMRC to resolve alleged Strategic Export offences out of court through a payment, avoiding legal proceedings. HMRC will only offer such a settlement if there is sufficient evidence to prosecute.
Last month, Petrofac Facilities Management Limited became the first company publicly named by HMRC for accepting such a penalty. This naming marks a shift in how HMRC handles compound settlements for strategic exports, aiming to improve transparency and consistency with other UK law enforcement bodies.