Question
Download Solution PDFThe term "facilitation payment" refers to:
Answer (Detailed Solution Below)
Option 2 : Payments made to accelerate legitimate government processes
Detailed Solution
Download Solution PDFThe correct answer is - Payments made to accelerate legitimate government processes
Key Points
- Facilitation Payment
- These are typically small amounts of money paid to government officials.
- The purpose is to expedite or secure the performance of a routine governmental action.
- Examples include speeding up the processing of permits or licenses.
- Such payments are considered bribes in many jurisdictions, but they are legally permissible in some under specific conditions.
Additional Information
- Legal Context
- Facilitation payments are generally legal under the Foreign Corrupt Practices Act (FCPA) in the United States, but the payments must be for routine governmental actions.
- The UK Bribery Act 2010, however, does not recognize facilitation payments as legal and prohibits them entirely.
- Ethical Considerations
- While facilitation payments may be legal in some jurisdictions, they are often viewed as unethical because they can perpetuate corruption.
- Many organizations have internal policies that prohibit such payments to maintain ethical standards and corporate integrity.
- Difference from Bribery
- Facilitation payments are meant to expedite routine actions that officials are already obligated to perform.
- Bribery involves paying an official to obtain or retain business or secure an improper advantage, which goes beyond routine governmental actions.