Airbus Operations Limited has agreed to pay more than £6.4m to HM Revenue and Customs (HMRC) after admitting multiple breaches of the UK's strategic export control rules.
HMRC said the payment was the largest compound settlement it had ever reached over strategic export offences.
The company disclosed the breaches in its quarterly earnings report, while details of the settlement were published by the UK government.
The breaches related to Airbus Operations Limited's failure over a sustained period to keep required records of the export or transfer of controlled technology.
HMRC said the company had self-reported the breaches and fully co-operated with its investigation.
Edwige Hill, deputy director of HMRC's Fraud Investigation Service, said the UK had a "strict licensing regime" designed to prevent military equipment and controlled technology from reaching the wrong hands.
"This settlement shows we will not hesitate to take action," she said.
The breaches included multiple failures to maintain accurate records of transfers of controlled technology under the conditions of three Open General Export Licences.
The company was also found to have failed on several occasions to maintain required registers and accurate records under other export licences.
In a separate case, it breached the conditions of a Standard Individual Export Licence.
The UK's export control system covers strategic goods including military equipment, dual-use items and products that could be used in weapons of mass destruction programmes. It forms part of a wider international framework based on a number of international agreements.
A compound settlement allows HMRC to resolve alleged strategic export offences without court proceedings through the payment of a financial penalty.
HMRC said it would only offer such a settlement where it believed there was sufficient evidence to prosecute.
The latest case comes after Petrofac Facilities Management Limited became the first company publicly named by HMRC for accepting a compound settlement under its strategic export controls.
HMRC said the decision to name companies represented a change in its approach, aimed at improving transparency and consistency with other UK law enforcement agencies.
When determining whether a settlement is appropriate and how much should be paid, HMRC considers factors including the seriousness of the alleged offence, whether fraudulent intent can be established, the nature and value of the goods involved, the company's previous history and its level of co-operation with investigators.
HMRC also considers penalties imposed by courts in comparable cases.
The department said effective controls over military goods were important to UK national security. Companies can voluntarily disclose unlicensed exports of strategic or sanctioned goods, or transfers of controlled technology.
Depending on the circumstances, such disclosures can result in an educational visit, a written warning, a compound settlement or, in the most serious cases, referral to UK prosecutors. Photo by Nemausensis Asinus, Wikimedia commons.
