According to the Financial Times, BAE will not be allowed to obtain any new export licenses after BAE’s settlement of bribery charges.

It [The US State Department] says it wants to establish what impact the UK armsmaker’s agreement last month with the Department of Justice will have on the enforcement of export controls of defence equipment.

The move could hamper BAE’s ability to export products with sensitive US-made content on key defence programmes.

Europe’s largest defence contractor pleaded guilty in a US district court on March 1 to charges that it conspired to defraud the US, made false statements about its anti-bribery compliance programme and violated arms control rules.

A State Department official confirmed that there was a “temporary administrative” hold on applications by BAE. “While we have resumed processing some BAE licences, other licences will continue to be delayed pending our issuance of a general policy. We anticipate this general policy will be completed soon.”

BAE’s plea agreement resulted in a $400 million dollar fine, after admitting guilt to charges that it “conspired to defraud the US, made false statements about its anti-bribery compliance programme and violated arms control rules.”

And, it is not yet clear whether the export license restrictions apply to BAE plc or its US subsidiary, BAE Systems Inc, or both. However, the DoJ has stated that the defense company’s US division was not involved in BAE’s criminal wrongdoing.

For more information, read the complete article at FT.com