This is a corporate policy document designed to meet the standards of the Foreign Corrupt Practices Act, a provision of the Securities and Exchange Act of 1934. FCPA generally prohibits payments by companies and their representatives to foreign (i.e., non-U.S.) government and quasi-government officials to secure business.
The Nevada Foreign Corrupt Practices Act (CPA) — Corporate Policy is a set of guidelines and regulations implemented by the state of Nevada to combat and prevent corrupt business practices in international transactions. It is an extension of the federal Foreign Corrupt Practices Act, designed specifically for companies based in or operating in Nevada. The Nevada CPA — Corporate Policy aims to promote fair and ethical business conduct, discourage bribery, and ensure transparency in international business affairs. It helps companies maintain their reputation and avoid legal consequences, while fostering a more level playing field for businesses operating abroad. Under this policy, companies are required to adhere to strict guidelines to ensure compliance with anti-corruption laws. These guidelines cover a wide range of areas, including: 1. Prohibition of bribery: The policy prohibits companies and their employees from offering, promising, or giving any form of bribery or corrupt payments to foreign officials, parties, or intermediaries to obtain or retain business or secure an undue advantage. 2. Accurate record keeping and financial reporting: The policy stresses the importance of accurate and transparent financial reporting, ensuring that all books, records, and accounts accurately reflect the transactions and dispositions of the company's assets. 3. Due diligence: The policy emphasizes the need for thorough due diligence when engaging with third parties, such as suppliers, distributors, agents, or contractors, to ensure they comply with anti-corruption laws and standards. 4. Gifts, hospitality, and entertainment: The policy provides guidelines on the acceptable limits and reporting requirements for gifts, hospitality, entertainment, and other similar expenditures to avoid any perception of improper influence. 5. Internal controls and compliance programs: The policy requires companies to establish adequate internal controls and compliance programs to detect and prevent violations of anti-corruption laws, including regular risk assessments, employee training, and periodic audits. It is important to differentiate that the Nevada Foreign Corrupt Practices Act — Corporate Policy is not an alternative or subsidiary law to the federal Foreign Corrupt Practices Act but works in harmony with it. Nevada-based companies must comply with both sets of regulations to ensure full legal compliance. While there may not be different types of Nevada CPA — Corporate Policy, companies may tailor the policy to their specific industry, risks, and operations. Therefore, the implementation, enforcement, and reporting mechanisms might differ slightly depending on the company's nature of business, size, and geographical reach. Nonetheless, the core principles and goals of the policy remain consistent across all companies subject to its jurisdiction.
