The fines -- 400 million dollars to the DoJ, and 30 million pounds (47 million dollars) to the SFO -- relate to investigations into BAE deals with countries including Tanzania, the Czech Republic, Hungary and Saudi Arabia.

The defence firm admitted conspiring to make false statements to the US government about its compliance with anti-corruption regulations, and for failing to record commission payments relating to a 1999 deal with Tanzania.

"The company very much regrets and accepts full responsibility for these past shortcomings," BAE Systems chairman Dick Olver said.

Under the US deal, which still requires court approval, BAE agreed to plead guilty to one charge of conspiring to make false statements to the US government concerning certain regulatory filings and undertakings.

The DoJ accused the firm of intentionally failing to put appropriate anti-bribery measures into place and for concealing commission payments.

It accused BAE of making hundreds of millions of dollars in payments to third parties, in the knowledge that the money would very likely be handed over to people to favour BAE in the awarding of defence contracts.

In particular, the DoJ's charge sheet highlighted "substantial benefits" given to a Saudi Arabian official who had influence over the sale of Tornado aircraft to the kingdom.

These benefits were provided through a BAE employee who racked up more than five million dollars of expenses between May 2001 and early 2002, it claimed.

BAE was also alleged to have agreed to transfer more than 10 million pounds and more than nine million dollars to a bank account in Switzerland, aware that the money would likely end up in the hands of the Saudi official.

The DoJ said BAE had given assurances that such payments would be properly scrutinised but failed to do so.

The defence firm said it would plead guilty to conspiring to make false statements, adding: "The company will pay a fine of 400 million dollars and make additional commitments concerning its ongoing compliance."

BAE's arms deals with Saudi Arabia were the subject of an SFO investigation but it was dropped in 2006 for what the government said was reasons of national security.

Under the SFO deal agreed Friday, BAE said it would plead guilty to one charge of breach of duty to keep accounting records concerning payments made to a former marketing advisor in Tanzania over the sale of a radar system in 1999.

BAE admitted the payments were not properly recorded and agreed to pay 30 million pounds, some of which will be used for the benefit of Tanzania.

SFO Director Richard Alderman said he was "very pleased" with the settlement, and said it would bring an end to his investigations into BAE.

Just hours later, the SFO dropped charges against an Austrian former agent of BAE who was accused of conspiring to give corrupt payments for the supply of Gripen fighter jets to European countries.

The DoJ's charge sheet mentioned BAE's failure to declare commissions on negotiations for the lease of Gripen jets to the Czech Republic and Hungary.

BAE chairman Olver expressed hope that Friday's agreement would bring an end to the investigations, saying: "These settlements enable the company to deal finally with significant legacy issues."

He said the firm had made significant changes to the way it operated and hoped that in future, "the company is as widely recognised for responsible conduct as it is for high quality products and advanced technologies".

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