OTTAWA: Canada will no longer tolerate its companies’ bribing foreign officials in order to speed up or facilitate routine transactions such as permits, the government said Monday.
Ottawa closed a loophole in a 1998 law that banned bribes but allowed so-called facilitation payments, also known as “grease payments,” it said in a statement.
Effective from October 31, such payments will be illegal. The penalty for bribery is up to 14 years in prison.
“The government of Canada expects Canadian organizations operating overseas to act in accordance with Canadian laws and the laws of the countries in which they do business,” said a statement.
The legislation was strengthened in 2013, giving Canadian authorities the reach to prosecute Canadian nationals guilty of corruption abroad.