The Corruption Of Foreign Public Officials Act (Canada) - Due Diligence Issues

On February 15, 1999 the Corruption of Foreign Public Officials Act (the "Corruption Act")¹ came into force in Canada. The Corruption Act makes it an offence to bribe foreign public officials in the course of business. The Corruption Act fulfils Canada’s obligations under the Organization for Economic Cooperation and Development (the "OECD Convention"). This paper will first discuss the existing law prior to the enactment of the Corruption Act, followed by a detailed look at the Corruption Act. Next, this paper will discuss red flags that an investigator might look for when investigating a possible breach under the Corruption Act. Finally this paper will demonstrate how a company can design a Corruption Act compliance program based on the American experience with the Foreign Corrupt Practices Act ("FCPA") compliance program model from the United States.