BAE Systems plc and its business units and subsidiaries – except its U.S. subsidiary, BAE Systems, Inc. – entered into a civil settlement with the U.S. Department of State for alleged violations of the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR). The State Department alleged BAE committed 2,591 violations of the ITAR in connection with unauthorized brokering of U.S. defense articles and services, and that the violations were “systemic, wide-spread, and sustained for more than ten years.” Under the terms of a consent agreement, BAE agreed to pay $79 million in fines and remedial compliance measures. The State Department also denied, pending further review, the export license applications of BAE subsidiaries BAE Systems CS&S International, Red Diamond Trading Ltd., and Poseidon Trading Investments Ltd. In light of its 2010 criminal conviction (see BAE Systems instance, “Foreign Corruption Global Settlement”), the State Department imposed a statutory debarment (under section 127.7 of the ITAR) on BAE but concurrently rescinded it, finding that the company had taken appropriate steps to mitigate law enforcement concerns.