1. Foreign Corrupt Practices Act
related to Joint Ventures
Tyler Meyer
Katie Meyer
Kim Thelwell
Annie Smith-Bova
Amanda Henry

2. Who is Liable?
 All parties involved in a joint venture are liable
under FCPA
 Anti-Bribery
 Same for majority and minority interests
 Depends on knowledge of actions, not
percentage ownership
 Accounting Provisions
 Majority interest is liable for books and records
 Minority interest may avoid liability if they
implement controls designed to insure
compliance with the accounting provisions

3. Due Diligence
 “All necessary precautions”
 Well documented
 If not possible prior, then agreement needs to
state that due diligence will be conducted
immediately after JV formed
 To verify & determine:
 Direct/Indirect Government Influence or Ownership
 Reputation

4. Joint Venture Agreement
Provisions
Annual
Prohibited
Certificati
Payments
on
Approval
of Sub- Audit
contractor Rights
s

5. Action Steps
 Understand Liabilities
 Pick the Right Partner
 Conduct Exhaustive Due Diligence
 Produce Ironclad JV Agreement
 Implement Compliance Program
 Have an Exit Strategy

6. Sources
 http://law2.fordham.edu/publications/articles/600flspub8971.pdf
 http://www.acc.com/chapters/charlotte/upload/october-6-2010-
international-joint-ventures.pdf
 http://www.fcpablog.com/blog/2007/9/5/the-requestors-french-
dilemma.html
 http://www.fcpablog.com/blog/2008/10/22/business-down-
compliance-risks-up.html
 http://www.fcpablog.com/blog/2008/10/27/use-it-or-lose-it.html
 http://www.fcpablog.com/blog/2008/11/10/fearing-third-
parties.html
 http://www.insidecounsel.com/2012/04/25/regulatory-7-points-
to-consider-in-regard-to-fcpa
 http://www.justice.gov/criminal/fraud/fcpa/guide.pdf
 http://www.justice.gov/criminal/fraud/fcpa/opinion/2001/0101.pd
f
 http://www.justice.gov/opa/pr/2011/April/11-crm-431.html
 http://www.sec.gov/spotlight/fcpa.shtml