Exporters – Caution! New Regulation Ahead - Gadi Ouzan, Partner, and Attorney Dani Rinot at Shibolet  &  Co.'s corporate practice group explain the ramifications of Israel signing the OECD pact and how it will affect Israeli exporters.

 As of March Israel has joined the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions (OECD), which places it among 37 countries who have previously signed the pact. The implications directly affect many Israeli corporations that conduct business transactions and sales overseas, including high-tech and security related companies.

For Israel to be accepted as a valid member, legislatures initiated modifications in order to align with the OECD requirements:

Bribery to public foreign workers – criminal felony. Israeli citizens and companies are exposed to felony charges in Israel for granting illegal benefits to foreign public officials outside of Israel.
Bribery payment is not a recognized expenditure.
 

In preparation for the new rules and regulations we suggest corporations take the following precautions:

Re-examining agreements and contracts that specifically deal with export activities.
Enforcing an interior compliance program.
 

Follow this link for to read the client update: