United States Foreign Corrupt Practices Act (FCPA) Compliance


The FCPA
The FCPA is a U.S. statute that prohibits U.S. companies and their representatives from giving, paying, promising, offering, or authorizing the payment, directly or indirectly through a third party, of anything of value to any Non-U.S. “ foreign official” to persuade that official to help the company obtain or keep business or to secure some other improper advantage.

Accounting and Recordkeeping
The FCPA requires U.S. companies to keep accurate and complete records of the transactions in which they engage. As a publicly-owned company, Medyamax’s policy is to maintain strong internal controls and ensure accurate and complete records, consistent with the FCPA standards.

What is Prohibited?
The law prohibits offering, promising, or giving “anything of value” to an official to get or keep business or secure some other improper advantage. The prohibition is not limited to cash payments. Gifts, entertainment, excessive business promotional activities, and covering or reimbursing expenses of officials can violate the law. Any expense in excess of $100 (U.S.) requires prior approval of the Company

Penalties and Enforcement
The FCPA is aggressively enforced by the U.S. Department of Justice and the U.S. Securities and Exchange Commission. Companies may be fined millions of dollars for violations of the FCPA. Individuals are subject to fines up to $100,000 per violation, imprisonment up to five years, or both. Recent cases have routinely resulted in prison sentences for corporate executives. Non-U.S. persons have also been subject to enforcement actions and prison terms. Additionally, a company can suffer devastating consequences even if it is not convicted or the statutory penalties are not brought into play – a mere indictment under the FCPA may trigger sanctions, including loss of export privileges and eligibility for U.S. contract awards

Who Is a “Foreign Official”?
For purposes of the FCPA, it is legally irrelevant whether a person is considered a government official by the government at issue. The U.S. law definition controls. “Foreign officials” include without limitation any appointed, elected, honorary or career employee, candidate or official of the government, public international organization, or any political party regardless of rank or position. The "government" includes without limitation any agency, department, embassy, or other governmental entity. It also includes any company or other entity owned or controlled by the government. A person does not cease to be a government official by purporting to act in a private capacity or by the fact that he or she serves without compensation. Any questions about the status of an individual should be brought to the attention of a representative of Medyamax.

Local Law
Although these Guidelines focus on compliance with the FCPA, it is necessary to remain equally attentive to compliance with the local laws of each of the countries in which Medyamax operates or seeks to operate. The international movement against official corruption has spawned new cooperation mechanisms between U.S. enforcement officials and their Non-U.S. counterparts, which significantly increase the risk of investigation and prosecution.

Questions and Guidance
If a question arises or you need additional information or are unsure of a difficult issue, please immediately consult with Medyamax representative at compliance@medyamax.com