FCPA Opinion Procedure Release 93-01

FCPA Opinion Procedure Release 93-01 came from a company planning to enter into a joint venture partnership agreement to supply management services to a business venture owned and operated by a quasi-commercial entity, which entity is wholly owned and supervised by the government of a former Eastern bloc country.

The requestor has represented that although the joint venture partnership or another entity owned by the United States partner in the first instance will pay the foreign directors’ fees, the fees ultimately will be reimbursed by the foreign partner either from the foreign partner’s share of the net profits from the partnership or from its other funds. Moreover, the United States partner will undertake to educate the foreign directors regarding the avoidance of possible FCPA violations in the conduct of the partnership’s business.

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