Let's talk, about recent updates to Canada's corruption of foreign public officials act and what this can mean for your organization
Recently the Canadian government revoked its exception for facilitation payments under the corruption of foreign public
officials act or "CFPOA".
This amendment demonstrates the government's continued efforts to ensure that Canadian businesses and organizations operating
outside the country conduct themselves
responsibly, and with integrity in the global marketplace
Canada's anti-bribery law, prohibits anyone, from giving or offering a loan
Or reward an advantage or benefit of any kind either
directly or through intermediaries to a foreign public. Official in order to obtain or retain a business advantage
Facilitation payments
Sometimes referred to as "grease payments" are typically made to help expedite government services of our routine nature
that is part of a foreign public officials' normal duties or their functions
These payments are now illegal and are no longer considered as a possible defense for bribery
The CFPOA sets out a list of examples of facilitation payments that are no longer excluded from the bribery offense
these include the following examples:
Any payments for the issuance of permits licenses or other documents in order to qualify a person to do business
The processing of official documents such as visas and/or work permits. The provision of services such as;
telecommunication services or power and water supply
And payments for normal government services such as police protection or customs inspection related to the transportation of goods
These types of payments, may now lead to criminal prosecution in Canada
This amendment now brings Canadian legislation into alignment with
legislation of other countries including the UK's Bribery Act. It also adopts recommendations from the OECD and other
organizations like transparency international for countries to take steps to discourage businesses from making any facilitation payments at all
While a facilitation payments exclusion is still found in the US Foreign Co rrupt Practices Act,
In practice it has at a very narrow
Interpretation accorded to it by the us enforcement agencies and for this reason most companies in the US
Do not provide for this exclusion in their anti-bribery compliance programs or their policies
Foreign bribery under Canadian law, has broad jurisdictional reach and is punishable
By up to 14 years in jail for individuals and has unlimited fines for businesses
It's also worthwhile to note that bribery and facilitation payments are not permitted regardless of whether the payment occurred
in Canada or abroad
Accordingly Canadian businesses operating in Canada and internationally would
be wise to ensure that their current business practices and compliance programs reflect
this latest development in anti-corruption enforcement in Canada
In addition to possible imprisonment and fines
Convicted corporations could face being barred, from doing, business with the government for up to 10 years
Under Canada's integrity regime as, well as facing sanctions under equivalent debarment policies in other jurisdictions
The elimination of facilitation payments from the anti-corruption act is an important reminder to Canadian corporations
who operate internationally
that adopting effective anti, bribery compliance due diligence and monitoring programs is
Critical to safeguarding their businesses from the severe risks of an anti-corruption violation
if nothing else these recent changes present a good opportunity to check if your
Organization, is taking the appropriate steps to manage its ongoing bribery risks