How does Sarbanes-Oxley apply to an international company with a location in the US and Mexico working under the NAFTA agreement? The home office is in Finland but the location in the US has a separate accounting department.

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The Sarbanes-Oxley Act of 2002 applies to publicly traded U.S. companies, and international companies traded publicly in the U.S. If your company is not traded publicly on U.S. exchanges either as a U.S. corporation or as a foreign company via American Depository Receipts (ADRs), then the Act does not apply, but if either of the above are true, then the Sarbanes-Oxley Act applies.

Sarbanes-Oxley compliance is generally considered to be a good practice. Compliance with some parts of the act may be incorporated in the loan covenants of some U.S. banks. If a company is seeking financing from certain banks, they may encounter a requirement that the company comply with certain parts of the law.

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