A Canadian Update on The Fight Against Foreign Bribery
Bribery is a serious crime in Canada. Bribery refers to offering, promising, giving, accepting, or soliciting an advantage to induce an action that is illegal, unethical, or a breach of trust. Corruption refers to the abuse of power for private gain. Bribery and corruption of foreign government officials represent risks to the rule of law, and rules-based trade and investment.
Canada has enacted laws to fulfill anti-bribery and anti-corruption obligations under the United Nations Convention against Corruption[1] and the Inter-American Convention Against Corruption. [2] The Corruption of Foreign Public Officials Act [3] (“CFPOA”) criminalizes foreign bribery and corruption. The Criminal Code of Canada criminalizes domestic bribery [4]. The Freezing Assets of Corrupt Foreign Officials Act [5] provides powers to seize, freeze, or sequester property inappropriately acquired by foreign public officials.
Under the CFPOA it is an offence for a person, in order to obtain an advantage in the course of business, to offer a loan, reward, advantage or benefit to a foreign public official in return for an act or omission of an official or as an inducement.[6] It is also an offence to maintain deceptive books and records in order to bribe a foreign public official.[7] A person convicted of CFPOA offence may be liable to imprisonment for up to 14 years.
Enhanced Canadian anti-bribery and anti-corruption legislation seems likely. Observers have called for a more protective due diligence, and transparency measures. These new measures may include whistleblower protection, penalties for not preventing bribery, and the publication of investigations and prosecutions.
Managing Partner (Vancouver), Miller Thomson LLP
[1] Canada signed the UN Convention on May 21, 2024 and ratified on October 2, 2007.
[2] Canada signed the Inter-American Convention on June 7, 1999 and ratified it on June 6, 2000.
[3] S.C. 1998, c. 34.
[4] RSC, 1985, C-46. See section 118 (definition of official), section 119 (bribery of judicial officer) and section 120 (bribery of officers).
[5] S.C. 2011, c. 10.
[6] See subsection 3(1) (Bribing a foreign public official).
[7] See subsection 4(1) (Accounting).
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