THE LATEST DEVELOPMENTS IN CANADIAN ANTI-CORRUPTION ENFORCEMENT AND COMPLIANCE
Canada’s compliance and enforcement landscape on anti-corruption issues has continued to significantly evolve over the course of the last year or so. The Corruption of Foreign Public Official Act (CFPOA) itself has remained unchanged since June 2013 when it underwent significant amendment, including the addition of nationality jurisdiction, accounting offences and a mechanism for the removal of the facilitation payments exception. However, there have been several key developments in enforcement, corruption-related legislation and government policy impacting Canadian companies and individuals doing business abroad.
CFPOA enforcement – the key stats
To date there have been only four convictions under the CFPOA. During 2013 to 2014, Canadian businessman Nazir Karigar was tried and then sentenced to three years imprisonment (currently under appeal). In 2013, Griffiths Energy International Inc. pled guilty and was fined $10.35m. In 2011, Niko Resources Ltd. pled guilty, was fined $9.499m and was subject to a probation order for three years. And in 2005, Hydro-Kleen Group Inc. pled guilty and was fined $25,000.
According to Global Affairs Canada’s latest report to parliament (7 October 2016), there are 10 active CFPOA investigations, down from the 36 identified in its 7 November 2013 report. Although the number of ongoing CFPOA investigations has fallen, there are several important enforcement developments worthy of note.
Jul-Sep 2017 Issue
McCarthy Tétrault LLP