Corruption of Foreign Public Officials Act
Encyclopedia
The Corruption of Foreign Public Officials Act (CFPOA) is a corruption law in force in Canada
. It was passed in 1999, ratifying the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and is often referred to as the Canadian equivalent to the Foreign Corrupt Practices Act
(FCPA).
The FCPA is considered to have far greater jurisdictional reach than the CFPOA, applying to issuers in the United States, domestic concerns and any person pursuing a bribery arrangement with a foreign official while within the territory of the United States.
Every person commits an offence who, in order to obtain or retain an advantage in the course of business, directly or indirectly gives, offers or agrees to give or offer a loan, reward, advantage or benefit of any kind to a foreign public official or to any person for the benefit of a foreign public official.
(a) as consideration for an act or omission by the official in connection with the performance of the official’s duties or functions; or
(b) to induce the official to use his or her position to influence any acts or decisions of the foreign state or public international organization for which the official performs duties or functions.
and the CFPOA was criticised by the OECD which cited jurisdictional loopholes, weak penalties and an insufficient number of prosecutors and police assigned to go after offenders”.
In May 2011, the NGO Transparency International
suggested that Canada
was a long way behind other developed countries, identifying it as one of 21 states undertaking "little or no enforcement" of their anti-bribery legislation”. It reported that "Canada is the only G7 country in the little or no enforcement category, and has been in this category since the first edition of this report in 2005".
The compliance
consultancy Billiter Partners suggested that “unlike its US counterparts, Canadian authorities have yet to charge a well-known Canadian firm for bribery.” The most high profile recent CFPOA investigation resulted in charges being made in May 2010 against Nazir Karigar for allegedly making a payment to an Indian government official to facilitate a multi-million dollar contract for the supply of a security system. Also notable was the announcement in January 2009, that the Royal Canadian Mounted Police
(RCMP) was reported to be investigating Niko Resources
over allegations that it had made improper payments to government officials in Bangladesh
.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. It was passed in 1999, ratifying the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and is often referred to as the Canadian equivalent to the Foreign Corrupt Practices Act
Foreign Corrupt Practices Act
The Foreign Corrupt Practices Act of 1977 is a United States federal law known primarily for two of its main provisions, one that addresses accounting transparency requirements under the Securities Exchange Act of 1934 and another concerning bribery of foreign officials.- Provisions and scope...
(FCPA).
Jurisdiction
Canada has jurisdiction over the bribery of a foreign public official when the offense is committed in whole or in part in its territory. To be subject to the jurisdiction of Canadian courts, a significant portion of the activities constituting the offense must take place in Canada.The FCPA is considered to have far greater jurisdictional reach than the CFPOA, applying to issuers in the United States, domestic concerns and any person pursuing a bribery arrangement with a foreign official while within the territory of the United States.
Relevant Provisions
The CFPOA provides under Section 3.(1):Every person commits an offence who, in order to obtain or retain an advantage in the course of business, directly or indirectly gives, offers or agrees to give or offer a loan, reward, advantage or benefit of any kind to a foreign public official or to any person for the benefit of a foreign public official.
(a) as consideration for an act or omission by the official in connection with the performance of the official’s duties or functions; or
(b) to induce the official to use his or her position to influence any acts or decisions of the foreign state or public international organization for which the official performs duties or functions.
Criticism
In March 2011, CanadaCanada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
and the CFPOA was criticised by the OECD which cited jurisdictional loopholes, weak penalties and an insufficient number of prosecutors and police assigned to go after offenders”.
In May 2011, the NGO Transparency International
Transparency International
Transparency International is a non-governmental organization that monitors and publicizes corporate and political corruption in international development. It publishes an annual Corruption Perceptions Index, a comparative listing of corruption worldwide...
suggested that Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
was a long way behind other developed countries, identifying it as one of 21 states undertaking "little or no enforcement" of their anti-bribery legislation”. It reported that "Canada is the only G7 country in the little or no enforcement category, and has been in this category since the first edition of this report in 2005".
The compliance
Regulatory compliance
In general, compliance means conforming to a rule, such as a specification, policy, standard or law. Regulatory compliance describes the goal that corporations or public agencies aspire to in their efforts to ensure that personnel are aware of and take steps to comply with relevant laws and...
consultancy Billiter Partners suggested that “unlike its US counterparts, Canadian authorities have yet to charge a well-known Canadian firm for bribery.” The most high profile recent CFPOA investigation resulted in charges being made in May 2010 against Nazir Karigar for allegedly making a payment to an Indian government official to facilitate a multi-million dollar contract for the supply of a security system. Also notable was the announcement in January 2009, that the Royal Canadian Mounted Police
Royal Canadian Mounted Police
The Royal Canadian Mounted Police , literally ‘Royal Gendarmerie of Canada’; colloquially known as The Mounties, and internally as ‘The Force’) is the national police force of Canada, and one of the most recognized of its kind in the world. It is unique in the world as a national, federal,...
(RCMP) was reported to be investigating Niko Resources
Niko Resources
Niko Resources is an India and South East Asia focused oil and gas exploration and production company that shares ownership of many exploration and development properties with Komodo Energy and Reliance Industries. Though it holds exploration rights to of land in 7 countries production currently...
over allegations that it had made improper payments to government officials in Bangladesh
Bangladesh
Bangladesh , officially the People's Republic of Bangladesh is a sovereign state located in South Asia. It is bordered by India on all sides except for a small border with Burma to the far southeast and by the Bay of Bengal to the south...
.
See also
- Convention against Corruption (disambiguation)
- Politically exposed personPolitically exposed personPEP is an abbreviation for Politically Exposed Person, a term that describes a person who has been entrusted with a prominent public function, or an individual who is closely related to such a person. The terms PEP, Politically Exposed Person and Senior Foreign Political Figure are often used...
- The UK Bribery ActBribery Act 2010The Bribery Act 2010 is an Act of the Parliament of the United Kingdom that covers the criminal law relating to bribery. Introduced to Parliament in the Queen's Speech in 2009 after several decades of reports and draft bills, the Act received the Royal Assent on 8 April 2010 following cross-party...
- OECD Anti-Bribery ConventionOECD Anti-Bribery ConventionThe OECD Anti-Bribery Convention is a convention of the OECD aimed at reducing corruption in developing countries by encouraging sanctions against bribery in international business transactions carried out by companies based in the Convention member countries...