FMF and Commissions
Started by Patrick Mathern · Oct 31, 2017 · 2 replies
- POriginal post
Patrick Mathern
Oct 31, 2017 · 8y ago
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
- j
ji20874
Nov 1, 2017 · 8y ago
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.
- h
here_2_help
Nov 1, 2017 · 8y ago
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.