Facilitation or “grease” payments (small payments to facilitate routine government action) have historically been illegal under prior legislation and common law in the U.K., although there has been only limited enforcement. The U.K. Bribery Act, which is now in force, specifically prohibits the issue of facilitation payments, a stance not taken by the US Foreign Corrupt Practices Act. Companies that have used the label “facilitation payment” to describe small, routine payments that encourage non-discretionary actions, will face new risks of prosecution.

Companies subject to the Bribery Act (i.e., companies with operations or a presence in the UK) need to understand their current facilitation payment practices. To avoid the unwelcome attention of the U.K. prosecutors, companies subject to the Bribery Act should be sure that they are not making facilitation payments direct or indirectly through agents and consultants. Companies that currently permit such payments, should have a plan in place to root out the practice within a reasonable timeframe or face a greater risk of prosecution.

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