The Sarbanes-Oxley Act of 2002 introduced a set of obligations to management of all US public companies. It is mandatory and all companies must comply with it.  Our White Paper analyzes the implications and consequences of applying the Sarbanes-Oxley Act for multinationals doing business or having a permanent presence through affiliates or subsidiaries in Latin America, including relationships between management and auditors, representation and warranties that multinationals’ top management must give United States regulators, and enhancement of disclosure in their reports and financial statements.

While the White Paper addresses the grounds and rationale of the Sarbanes-Oxley regulations (including those issued by the Securities and Exchange Commission and other governing bodies), it also suggests how to build a solid control structure to ensure compliance with the Law and its regulations while complying with  local laws  and achieving business goals and objectives.

All multinationals doing business on a global basis, and whose stocks are traded in the United States’ Exchange Markets, are subject to the very strict regulations imposed by the Sarbanes-Oxley Act and most continue to work aligning their operations in the United States in order to meet the requirements for information, representation, internal controls and accountability contained in the body of the Law. However, when the corporation’s reach of operations goes beyond the borders of the United States, such as in Latin American where many [US multinationals] have deep roots in the Region, and the Lawreaches into other legal systems, financial accounting standards and cultures, the question becomes: Can these multinationals cope with Sarbanes-Oxley regulations? 

Our paper attempts to analyze several of the critical issues related to the engagement of businesses throughout Latin America and formulates several conclusions and suggestions. To read our Sarbanes-Oxley  Paper click here.