Facilitation Payments Now Illegal Under Canada's Foreign Corruption Law

On October 31, 2017, the federal government brought into force a pending amendment to the Corruption of Foreign Public Officials Act ("CFPOA") likely to have a significant impact on many Canadian firms operating abroad. Starting on October 31, so-called "facilitation payments" – payments to low-level government officials to expedite or secure the performance of an act of a routine nature – will be illegal. Violations of the CFPOA have, historically, resulted in fines in the tens of millions of dollars for corporations, and can now attract prison terms of up to 14 years for individuals.

This amendment, which had been held in abeyance for over four years to allow companies to adjust their practices, was brought into force with only 24 hours' notice. Companies must immediately review their current practices and procedures to ensure that they have properly implemented controls to prevent any such payments going forward.