Facilitation Payments
Definition
A facilitation payment is a small payment to a low-level official to secure or expedite a routine, non-discretionary action the payer is already entitled to, such as processing a visa or clearing goods. It is not a payment to obtain business or to change a decision.
Legal position
The FCPA contains a narrow facilitation-payment exception, but the payment must still be recorded accurately. The UK Bribery Act 2010 has no such exception: a payment to expedite a function can still be bribery. The OECD’s 2009 Recommendation urges members to disallow or discourage facilitation payments. Many local laws prohibit them outright.
Controls
Prohibit them in policy, require escalation if demanded, document any payment and report it. Train staff that “small” and “routine” are legal tests, not informal excuses.
Worked example
A customs officer demands US$200 to release perishable goods that already have valid clearance. The action is routine and non-discretionary, so the FCPA exception may apply. But a UK-incorporated company would still face potential UK Bribery Act exposure, and the payment must be recorded accurately. The company should escalate, seek official receipts and report the demand.
Traps
Assuming the UK Act has a facilitation-payment defence. Calling any small payment a facilitation payment. Failing to record it or disguising it as “miscellaneous”. Treating a discretionary decision as routine.