Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 46

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 46
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 international locations in which
we operate lack a developed legal system and have higher than normal levels of corruption.

Economic sanctions programs restrict
our business dealings with certain sanctioned countries, persons and entities, such as Zimbabwe, a country in which we have a licensee.

Violations of anti-corruption
and trade control laws and sanctions regulations are punishable by civil penalties, including fines, denial of export privileges, injunctions,
asset seizures, debarment from government contracts and revocations or restrictions of licenses, as well as criminal fines and imprisonment.
We have established policies and procedures designed to assist our compliance with applicable U. S. and international anti-corruption and
trade control laws and regulations, including the FCPA, the Bribery Act and trade controls and sanctions programs administered by OFAC,
and have trained our employees to comply with these laws and regulations. However, there can be no assurance that all of our employees,
consultants, agents or other associated persons will not take actions in violation of our policies and these laws and regulations, and
that our policies and procedures will effectively prevent us from violating these regulations in every transaction in which we may engage
or provide a defense to any alleged violation. In particular, we may be held liable for the actions that our local strategic partners
take inside or outside of the United States, even though our partners may not be subject to these laws. Such a violation, even if our
policies prohibit it, could have a material adverse effect on our reputation, business, results of operations and financial condition.

Our continued international expansion,
including in developing countries, and our development of new partnerships and joint venture relationships worldwide, could increase the
risk of FCPA, OFAC or Bribery Act violations in the future. Additionally, our software contains encryption technologies, certain types
of which are subject to U. S. and foreign export control regulations and, in some foreign countries, restrictions on importation and/or
use. Any failure on our part to comply with encryption or other applicable export control requirements could result in financial penalties
or other sanctions under the U. S. export regulations, including restrictions on future export activities, which could harm our business
and results of operations. Regulatory restrictions could impair our access to technologies needed to improve our solutions and may also
limit or reduce the demand for our solutions in certain geographic regions.

Furthermore, we currently market
regulated insurance products as an intermediary agent in South Africa through an authorized Financial Services Provider (“ FSP”)
that is a wholly owned subsidiary of ours.