Patrick Mathern Posted October 31, 2017 Report Share Posted October 31, 2017 I have a client that is hiring a sales agent in a foreign country. This agent's territory will likely include contracts subject to FMF rules, sales will be direct commercial. This particular client compensates all of their sales agents with a commission plan. I've never worked with FMF before - it appears that commissions are allowed, but they have to be disclosed, they cannot be in violation of Anti-Kickback regulations, and it appears that commissions may need to be split out and paid by the Purchaser's national funds. My questions: 1. I'd like to wrap my head around this better. What is the purpose of the FMF rules on commissions/contingent fees? 2. What does the last provision (paid by Purchaser's national funds) mean? 3. Where can I find the source document that discusses FMF commission requirements from a contractor's perspective? Thanks in advance! Patrick Link to comment Share on other sites More sharing options...
ji20874 Posted November 1, 2017 Report Share Posted November 1, 2017 For FMF, do you mean Foreign Military Financing? If so, see http://www.dsca.mil/sites/default/files/dsca_guidelines_for_foreign_military_financing_of_direct_commercial_contracts.pdf -- page 5, item 11. Link to comment Share on other sites More sharing options...
here_2_help Posted November 1, 2017 Report Share Posted November 1, 2017 I have nothing on point to add, except that if the contractor isn't very knowledgeable about commissions and fees associated with international sales --whether or not government-financed or funded--then I would consider that situation to be very very high risk, from a FCPA compliance perspective. Link to comment Share on other sites More sharing options...
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