The Cooperation-and-Remediation-Credit Gap in FCPA Joint Ventures

In an article published in The Review of Securities & Commodities Regulation, Sidley lawyers Lisa H. Miller, Kenneth A. Polite Jr., Shannon McDonald, and Asher J. Zlotnik examine a critical compliance risk for companies participating in joint ventures (JVs) under the Foreign Corrupt Practices Act (FCPA).

The authors analyze how companies may face FCPA liability for joint venture misconduct while lacking sufficient operational control to investigate wrongdoing, cooperate with the U.S. Department of Justice (DOJ), or implement remediation measures necessary to obtain cooperation credit under DOJ's Corporate Enforcement and Voluntary Self-Disclosure Policy. Drawing on the TIGO Guatemala enforcement resolution, the article outlines practical considerations for structuring joint venture agreements, strengthening investigative access and compliance controls, and managing FCPA enforcement exposure.