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 [email protected]