Canada removes exception for ‘grease payments’ from corruption law

As from the end of October, the facilitation payments exception is no longer present in Canada’s Corruption of Foreign Public Officials Act (‘CFPOA’). The exception was repealed by Bill S-14: ‘An Act to amend the Corruption of Foreign Public Officials Act.’

The government said that ‘facilitation payments, also known as “grease payments,” are payments made to foreign government officials to speed up or facilitate routine transactions such as permits. These payments were not previously covered by the bribery offence in the CFPOA.’

Commentating on the change, lawyers at Gowlings note:

‘This exception has been in place since Canada enacted the CFPOA and has meant that companies subject to the Act could nonetheless make facilitation payments without being found to be in contravention of Canada’s foreign anti-bribery law.

‘This change brings Canada into line with other countries, like the United Kingdom, whose 2010 Anti-Bribery Act makes facilitation payments illegal. The United States continues to allow facilitation payments under the Foreign Corrupt Practices Act.’

The Amendment is at:
http://laws-lois.justice.gc.ca/eng/annualstatutes/2013_26/FullText.html

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