The Organisation for Economic Cooperation and Development has taken a new stance on facilitation payments, urging its member countries to encourage companies to ban or discourage their use.

Such payments, known as "grease payments," are generally small payments to a government official to expedite a routine bureaucratic action, but are considered controversial because of the murkiness on drawing a line between a true facilitation payment and a bribe, and the associated compliance headaches that can cause.

While a few jurisdictions—Australia, Canada, New Zealand, South Korea, and the United States—allow them, such payments are illegal under local law in all of the countries in which they're paid.

The OECD announced its new recommendation earlier this month as part of its Recommendation for Further Combating Bribery of Foreign Public Officials in International Business Transactions, unveiled on International Anti-Corruption Day.

The OECD recommends that, "in view of the corrosive effect of small facilitation payments, particularly on sustainable economic development and the rule of law that Member countries should: i. undertake to periodically review their policies and approach on small facilitation payments in order to effectively combat the phenomenon; ii. encourage companies to prohibit or discourage the use of small facilitation payments in internal company controls, ethics and compliance programmes or measures, recognizing that such payments are generally illegal in the countries where they are made, and must in all cases be accurately accounted for in such companies' books and financial records."

The OECD also urges "all countries to raise awareness of their public officials on their domestic bribery and solicitation laws with a view to stopping the solicitation and acceptance of small facilitation payments."

Previous OECD language on the topic simply left the issue up to its member countries.

TRACE International President Alexandra Wrage, who supports a total ban on facilitation payments, lauded the move.

"It's a strongly worded statement that provides support for employees working to minimize or prohibit these payments and arms them with something to take to management," Wrage tells Compliance Week. "It also puts the demand-side countries on notice."