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ARTICLE · 22 DECEMBER 2009

OECD Seeks To Ice Grease Payments

McGuireWoods LLP
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In an announcement this week, the Organization for Economic Cooperation and Development (OECD) took a strong stance against so-called "facilitation" or "grease" payments allowed under anticorruption laws such as the U.S. Foreign Corrupt Practices Act (FCPA), but outlawed in most countries.

United StatesGovernment, Public Sector
Howard Vick
Howard Vick
Mark Brzezinski
Mark Brzezinski
Timothy Flanigan
Timothy Flanigan
Charles McIntyre
Charles McIntyre

In an announcement this week, the Organization for Economic Cooperation and Development (OECD) took a strong stance against so-called "facilitation" or "grease" payments allowed under anticorruption laws such as the U.S. Foreign Corrupt Practices Act (FCPA), but outlawed in most countries. The OECD is a group representing the world's 30 largest economies. It is an active and well-respected player in helping develop and encourage the adoption of anticorruption laws around the world.

In an interview this week, the OECD Secretary-General described these low-level payments, designed to expedite performance of a "routine government action" such as obtaining mail delivery, or phone or power service, as "corrosive . . . particularly on sustainable economic development and the rule of law."

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