On October 31, 2017, the Government of Canada eliminated the facilitation payment exception from the Corruption of Foreign Public Officials Act (the “CFPOA”). The elimination of this exception was the final component of significant and high profile amendments to the CFPOA enacted over four years ago, which also:
- Expanded the jurisdiction for corruption offences based on nationality.
- Increased the maximum penalty for an individual convicted under the legislation to 14 years.
- Created a books and records offence.
- Provided the RCMP with exclusive authority to lay charges under the CFPOA.
The government delayed implementation of the provision of the 2013 amendments removing the facilitation payment exception from the CFPOA to provide companies with sufficient time to modify business practices and adapt their internal controls. Despite the length of notice, it is critical for companies conducting business abroad to be mindful of this major change to the legislation.