OECD Calls For Better Anti-Bribery Enforcement In Canada

by Mike Godfrey, Tax-News.com, Washington

01 April 2011

Canada's enforcement of anti-corruption measures has been dubbed "problematic" by a new Organisation for Economic Co-Operation and Development (OECD) report, which also criticises the lack of resources available for prosecution and makes several key recommendations for improvement.

On March 28, the OECD's Working Group on Bribery published its report on Canada's enforcement of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. It states that while improvement has been made in the investigative and enforcement areas, Canada's regime for enforcing its domestic legislation, the Corruption of Foreign Public Officials Act (CFPOA), remains problematic in important areas.

The report states that advancement has been made in the investigation of bribery of foreign public officials by Canadian businesses, but only one prosecution has been made since the CFPOA was enacted in 1999. However, enforcement has recently increased, with one company convicted in 2005 for violation of the Act's stipulations, one ongoing prosecution, and over 20 active investigations in place. The OECD praises Canada's RCMP International Anti-Corruption Unit for such success, and commends its substantial public outreach and awareness-raising efforts.

Nonetheless, despite such measured praise, the report issues a stark warning that Canada’s ability to successfully prosecute these investigations will be in jeopardy unless the Public Prosecution Service of Canada is given the resources it needs to prosecute the large volume of cases that may soon follow the investigations.

Important recommendations made in the report advocate that Canada:

• amends the CFPOA so that it is clear that it applies to bribery related to the conduct of all international business, not just business "for profit"
• ensures that sanctions applied in practice for CFPOA violations are effective, proportionate and dissuasive
• takes such measures as may be necessary to prosecute Canadian nationals for bribery of foreign public officials committed abroad, and
• clarifies that police and prosecutors may not consider factors such as the national economic interest and relations with a foreign state, when deciding whether to investigate or prosecute allegations of foreign bribery.

The Working Group also recommends that Canada report back on progress in October, 2011, and, that following the usual process, Canada is to make an oral report within one year, and a further written report within two years.

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