SEC Probes Tech Companies' Overseas Business Relationships for Corruption

the US Securities and Exchange Commission is investigating publicly traded tech companies' relationships with overseas distributors and business partners to uncover potential corruption.

Key Takeaways:

• The SEC has begun sending letters to tech companies about their partnerships with non-US entities under the Foreign Corrupt Practices Act
• The investigation aims to uncover any potential corruption involving offering incentives to non-US officials to win business contracts

Analysis:

This investigation demonstrates the SEC's commitment to enforcing anti-corruption laws and could lead to heightened scrutiny and potential repercussions for tech companies involved in overseas business dealings.

Do You Know?

• Foreign Corrupt Practices Act (FCPA): This law makes it a crime to offer anything of value to foreign officials to obtain or retain business.