Facilitation payments are small, unofficial payments made to expedite a routine service or action from a minor government official. These services could be things like processing paperwork, clearing customs, or obtaining permits.

The legality of facilitation payments is complex and varies by country. In some jurisdictions, they are explicitly illegal as a form of bribery. In others, they might be tolerated as a common practice, although not officially encouraged.

The U.S. Foreign Corrupt Practices Act (FCPA) prohibits U.S. companies and their subsidiaries from making facilitation payments to foreign government officials.

The key distinction between a facilitation payment and a bribe can be murky. The line blurs when the “routine service” becomes something the official isn’t obligated to provide, or when the payment influences a decision beyond just expediting the process.

Whistleblowing and Facilitation Payments:

Whistleblowers can bring to light a culture of reliance on facilitation payments within a company. This can expose underlying issues like weak internal controls or tolerance for unethical practices.

Information from whistleblowers can help authorities investigate whether facilitation payments have crossed the line into bribery, potentially involving larger sums or influencing significant decisions.

By exposing facilitation payments, whistleblowers can encourage companies to implement stricter compliance measures and promote transparency in their business dealings.