By David Simpson
Published on Tuesday February 27, 2018
« Facilitation Payments” are no longer a permissible category of payment under Canada’s Corruption of Foreign Public Officials Act, (CFOPA). The removal of the exemption was always anticipated but it has now formally come into effect.
Facilitation payments are essentially small payments made to a public official to expedite or secure the performance of routine, non-discretionary actions, which fall within the public official’s normal duties. The treatment of such payments under applicable anti-corruption laws differs from jurisdiction to jurisdiction, and the topic is not without controversy. Transparency International and the OECD have specifically noted the “corrosive effects” of facilitation payments and have encouraged their prohibition. While the US has so far chosen to maintain the exemption for facilitation payments under the US Foreign Corrupt Practices Act (FCPA), the UK Bribery Act and other jurisdictions contain no exemptions for facilitation payments. Canada has now made its position clear: facilitation payments will not be permissible under its anti-corruption regime.
This may present a good opportunity for many organizations to review their anti-bribery/corruption programs to ensure that their policies and procedures align with evolving legislation in this area.
Watch the CFOPA’s position on facilitation payments explained at:
Do you want to contribute to the blog?
Please have a look at our Blog Guidelines
