FARNSBOROUGH, England, June 26 (UPI) -- BAE Systems, Europe's largest arms manufacturer, is the target of a U.S. Justice Department corruption probe of the British company's American business.
BAE Systems said Tuesday Justice investigators were investigating the 20-year-old Al Yamamah arms deal with Saudi Arabia, the Financial Times reported. BAE Systems could fact substantial fines, criminal prosecutions and the appointment of an independent monitor for its U.S. operations.
In a statement, the company, located in Farnsborough, said it was notified of the Justice Department's investigation.
News of the probe comes a year after the British government intervened to stop an inquiry by the country's Serious Fraud Office, citing national security and manufacturing jobs threats. BAE maintained it has done nothing illegal and Al Yamamah was a government-to-government transaction completed with knowledge of the Ministry of Defense, the Times reported.
The U.S. Securities and Exchange Commission also is investigating BAE for possible violations of the books and records provisions of the Foreign Corrupt Practices Act, two sources familiar with the matter said. BAE said it had not been notified of an SEC inquiry.
