Professional Documents
Culture Documents
Cteba Rules - Eng
Cteba Rules - Eng
Cteba Rules - Eng
Review Corporate Instruction FIN/LEG 168 Business Amenities and Gifts for
additional guidance.
Get your manager’s approval before giving business amenities and gifts to others.
Finance and Legal approval must be obtained through the Compliance with
Transportation, Entertainment, and Business Amenities (CTEBA) process before
giving amenities over a certain value to government officials, employees of
government entities, GOEs or, in some countries, employees of commercial entities.
It is against IBM’s policy to offer or give a business amenity and gift to anyone if it is not per-
missible under applicable law or regulation. The laws and regulations regarding offering or
giving a business amenity and gift to External Parties vary from country to country and must
be adhered to. You must not use any personal funds or intermediaries like Business Partners,
agents, or consultants to circumvent the law and IBM’s policies. All expenses must be
reasonable (not lavish, inappropriate, or too frequent). They must be actual expenses
incurred in good faith – in other words, not used to improperly influence a decision – and be
directly related to a legitimate business purpose.
Business Amenities And Gifts
Six categories of Business Amenities and Gifts
are defined in FIN/LEG 168
Event
Entertainment Gifts Entrance Fees
• Tickets to a sporting • Promotional item, • Seminar, Trade Show
event or cultural e.g., (face-to-face
activities 1. IBM logo or virtual)
• Music merchandise • Education or lecture
2. Pens
3. USB keys
• Book / CD
Important: Fair market value/estimates for all amenities must include applicable
packaging, shipping, taxes/VAT, service fees, and gratuities.
Audio script
As per Corporate Instruction FIN/LEG 168, “business amenities” are defined as six
categories:
• Meals,
• Transportation,
• Accommodation and Lodging,
• Entertainment,
• Gifts,
• Waived Business Events’- Entrance Fees
Please take a moment to review the examples illustrated to become familiar with them
and note that fair market value/estimates for all amenities must include all applicable
taxes/VAT, packaging, shipping, service fees and gratuities.
What Is CTEBA And When Is It Required?
What is CTEBA?
9 Corporate wide mandate
9 Pre-approval process
9 Before offering business amenities and gifts to
External Parties
When is it required?
CTEBA applies to the provision of business
amenities and gifts to GOEs (Government Owned
Entities) and all Commercial Parties in countries
that require CTEBA pre-approval, as listed in the
CTEBA Community, which are above the
applicable clip level.
Here’s how it works – before offering any business amenity and gift over the applicable
CTEBA clip level to any employee of a Government Owned Entity or any Commercial Party
in the countries listed in the CTEBA Community, you must obtain prior management,
Finance, and Legal approval through the CTEBA tools.
By ensuring that business amenities and gifts offered to External Parties comply with IBM
policies, CTEBA helps protect IBM and its employees from claims that these business
amenities and gifts are being improperly used as bribes to help IBM win business.
If CTEBA does not apply (because there is no GOE or Commercial Party from a country
requiring CTEBA pre-approval involved, or the amenity is below clip), you must comply with
FIN/LEG 168 and secure management and other required approvals before offering
business amenities and gifts to External Parties.
It is your responsibility to comply with CTEBA. If you are unsure about whether it applies or
how to secure approvals, contact your CEM Compliance Advocate.
Who Is A Government Owned Entity?
Anyone employed by a government agency or
government -owned or government- controlled entity
Examples include:
IBM divides GOEs into two categories: Government Entities (GEs) and State Owned
Enterprises (SOEs).
GEs include:
• Governmental Bodies (national, state, local or municipal)
• Government-owned or -controlled schools, hospitals, utilities, etc.
• Public international organizations (e.g., United Nations)
• Companies subject to public procurement laws
SOEs include:
• any other type of companies, both privately held or publicly traded, that are
owned, controlled, organized, or sponsored by a GOE
• e.g. a public company where the largest shareholder is a GOE with 15% or
more shares
First, let’s clarify the terms. We differentiate two categories of GOEs: Government Entities
(GEs) and State-Owned Enterprises (SOEs).
State-Owned Enterprises can be any other type of entity even if privately held or publicly
traded, that are owned, controlled, organized, or sponsored by a GOE or a government
official. That would also include commercial businesses operating under government
power of attorney.
Pay particular attention if you are dealing with US Federal, State or Local entities, including
public hospitals and public universities.
In the US, the law is very strict – there are monetary caps on provision of business
amenities that vary by business amenity type, State, or branch of government. IBM also
has reporting obligations if business amenities and gifts are offered to government
employees in some circumstances.
If you are offering business amenities and gifts of any value to US Federal, State or Local
entities, be sure to use the applicable CTEBA tool and submit a request for pre-approval.
IBM has a repository where you can check if an External Entity is a Government Owned
Entity or not. The link can be found on the Resources page in this module.
What are CTEBA Clip Levels?
Clip Levels are dollar values assigned to business amenities and gifts to
establish a threshold above which approval (i.e. Line management, Finance, and
Legal review and approval) is required.
Note 1: External Entities from the US defined as US State/Local and US Federal, are
considered exceptions and their clip levels apply regardless of where the amenities
are offered.
Note 2: For External Entities from the US defined as Government Entity (GE) and
State-Owned Enterprise (SOE), apply the venue country clip levels to determine if
CTEBA pre-approval is required.
Clip levels vary by country, amenity type, and whether an External Entity is a GE, SOE, or
Commercial.
The venue country, or the destination country clip levels apply except when an External
Entity’s home country is an Exception Country. When an External Entity is from an
Exception Country, apply the clip level from the country where the entity is from to
determine if CTEBA pre-approval is required. A listing of Exception countries can be found
in the CTEBA Clip Level file at the link provided.
If your External Entity is from a country where Commercial Parties require CTEBA pre-
approval, ALL External Entities, not just GOEs, from the country require CTEBA pre-
approval when amenities exceed clip levels. Visit the CTEBA community at the link
provided for a listing of countries where Commercial Parties are subject to CTEBA pre-
approval.
When dealing with External Entities from the United States, those defined as US State/
Local and US Federal, are considered exceptions, therefore their clip levels apply
regardless of where the amenities are offered. Furthermore, External Entities from the
United States defined as Government Entity or GEs, and State Owned Enterprises or SOEs,
require the venue country clip levels to be applied to determine if CTEBA pre-approval is
needed.
Remember, if you have questions regarding which CTEBA clip levels apply, contact your
CEM Compliance Advocate. A link to the listing of CEM Compliance Advocates is available
on the Resources page of this module.
Do Commercial Parties require
CTEBA pre-approval?
• While some anti-corruption laws focus on government bribery, the principles
can also apply to Commercial (i.e. non-GOE) Parties. A growing number of
countries maintain strict commercial bribery laws or present other risk factors
that make the provision of business amenities and gifts to Commercial Parties
in that country higher risk.
• Where business amenities and gifts to Commercial Parties may create the
appearance of bribery, corruption, or other impropriety, such business
amenities and gifts to Commercial Parties must comply with CTEBA
pre-approval requirements.
Where business amenities and gifts to Commercial Parties may create the appearance of
bribery, corruption, or other impropriety, such business amenities and gifts to Commercial
Parties must comply with CTEBA pre-approval requirements.
To determine whether a country requires CTEBA pre-approval for Commercial Parties, click
on the link provided here or visit the CTEBA community for the listing.
When CTEBA pre-approvals are not required, i.e. non-GOEs or Commercial Parties from
countries that don’t require CTEBA pre-approval, you must follow guidance detailed in IBM
Corporate Instruction FIN/LEG 168.
Lastly, check the CTEBA Repository to determine whether your External Entity is
Commercial, GOE, or Commercial from a country that requires CTEBA pre-approval.
If no result is found, do not assume the External Entity is Commercial from a country not
requiring CTEBA pre-approval, contact your CEM Compliance Advocate for assistance.
Your Responsibilities
If you are providing or arranging the business amenity and gift, you must comply with
applicable laws and IBM’s requirements. Make sure the business amenities and gifts are
reasonable and there’s a legitimate business purpose. Follow the CTEBA requirements and
secure the required pre-approvals. Additionally, be sure to enter your External Party
expenses accurately and completely. For guidance on how to enter External Party expenses
in Concur, check out the Top Tips available through the Travel & Expense community via
the link provided.
As a participant we rely on IBMers like you to be aware of IBM’s obligations and speak up
if you think business amenities and gifts are unreasonable or if you think they don’t meet
applicable laws or IBM’s policies. Consult with your manager, Legal, Trust and Compliance,
or use an IBM Communication Channel to report your concerns.
In most cases, business amenities and gifts are appropriate when they are:
You cannot invite an External Party’s spouse to a business trip unless this spouse has a role
appropriate for the business trip.
The agenda of the trip should correspond with the business purpose of the trip. For
example, if the trip is to visit an IBM demonstration center in California, you should not add
another 5 days in Hawaii. IBM also does not pay for any side trips or sightseeing tours for
GOEs or Commercial Parties in countries that require CTEBA pre-approval. As required by
IBM policy, secure CTEBA approval for transportation and accommodation.
Listed are two real examples of travel offered by other companies to GOEs – these
companies faced fines, penalties and reputational harm as a result.
Meals And Entertainment
The cost of the meal should always be reasonable. Choose a place that is proper for a
business meal.
Undoubtedly you want to take your External Parties to a nice restaurant and provide them a
great experience, however you must operate within reason!
Avoid private dining rooms or unique dining experiences. As spectacular as they might be,
they are likely to give the appearance of impropriety. Do not forget to plan accordingly to
obtain your required CTEBA pre-approvals if you will be providing a meal to a GOE or
Commercial Parties in countries that require CTEBA pre-approval over the clip level.
Also, the frequency of business meals matters – ensure you are not taking the same
External Party to meals too often.
Since it is a business meal, a GOE’s or Commercial Party in countries that require CTEBA
pre-approval’s spouse or family should not be invited.
As for entertainment, IBM limits entertainment to only sporting or cultural events. You
cannot purchase the tickets and have the External Party go by themselves – you or another
IBMer must accompany them and use the opportunity for “talk time” and business
discussions.
As with the other categories – reasonableness is key. What is reasonable is not always
black and white – you must apply good business judgment.
Gifts And Event Entrance Fees
Examples:
• In 2014, Avon Products Inc. paid $135 million fines to settle FCPA charges.
- Improper gifts: Louis Vuitton, Gucci and high expense meals and
leisure travel.
• In 2019, Juniper Networks paid the SEC $11.7 million to settle FCPA offenses
- Sales employees of the company’s subsidiaries falsified trip and
meeting agendas for customers, including public officials, that
understated the real value of entertainment involved on the trips.
Audio script
While gifts to GOEs and Commercial Parties in countries that require CTEBA pre-approval
are not prohibited in all cases, gifts provide a personal and pecuniary benefit to the
recipient. There should be a legitimate purpose to offer the gift, such as to promote the
brand or to foster good will. To award the placement of an order is not a legitimate purpose.
Please be aware that under some local laws providing a gift is prohibited. Further, the
internal policy of the invitee may prohibit the provision of a gift. Listed are two real
examples of gifts offered by other companies to GOEs – these companies faced fines,
penalties and reputational harm as a result.
As for Event Entrance Fees, these are limited to fees offered to invitees to attend business
related events (such as the registration fee for a conference or IBM event like Think).
Providing tickets or passes to sporting events or other cultural events are not Event
Entrance fees, those are considered as Entertainment.
Where Can I Find Help?
Not sure if your External Entity is a GOE or Commercial Party in countries that require
CTEBA pre-approval, you can check the CTEBA Repository. In addition to these resources,
you will find a host of other helpful information on the CTEBA and IBM Event Marketing
Communities.