It is a very attractive idea to expand your marijuana business onto a worldwide scale, and it may even end up providing you with huge profits if you consider several things beforehand.
Some countries like Canada, Italy, Jamaica, and Colombia have made significant steps toward legalizing marijuana. The matter is causing a real struggle in the United States, which has the issues of confiscatory taxation (280E), as well as bank, research, and patenting limitations. Thus, doing business within all these legal guidelines may seem difficult and tricky without previous studying.
Several American brands have already lived out the dream of all marijuana entrepreneurs to sell their products in every place where marijuana is legalized. However, before becoming a global cannabis supplier, they had to face risks and overcome certain barriers of foreign laws and officials.
The latter is the trickiest and most important thing, as while establishing personal connections with foreign officials, you may accidentally violate the Foreign Corrupt Practices Act of 1977 (FCPA).
The FCPA is a federal law that was enacted by Congress in 1977. The decision to create this law was caused by the rise of international corruption and the revelation about American companies that had annually paid millions of dollars in bribes to foreign officials to secure their overseas activity. The Act ensures the implementation of transparency requirements established by the Securities Exchange Act of 1934.
Thus, you should follow the FCPA provisions if you do not want to find yourself in trouble. Particularly, you may be subject to prosecution in case you break the provisions of bribery to foreign officials and accounting transparency.
This means that you will violate the FCPA if you decide to present expensive gifts to foreign officials or otherwise influence them with any payments or rewards. Moreover, companies registered in the United States have to meet the accounting provisions of the FCPA. According to these guidelines, American companies must avoid the falsification of their accounting books and records.
Fortunately, there are three ways to ensure that you are not infringing the FCPA guidelines when carrying out your global business.
Make sure that your employees, including the sales team, the accounting department, the board of directors, and the executive management, are aware of the basic requirements of the FCPA.
Include a clause about following the FCPA provisions when entering into any contracts with your vendors and customers.
Monitor the proper implementation of the FCPA during the business activity of your company. Continually review the contracts and training programs and perform internal audits of the company transactions.
Despite the mentioned limitations of the FCPA, entrepreneurs are still able to establish transparent contacts with foreign government officials. However, the internal structure of a foreign government should also be clear to meet the requirements of the law completely.
Following these tips, you can be sure that your overseas success will not be ruined by the attention from the prosecution agencies.