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<html> <head> <meta name="Generator" content="Corel WordPerfect 8"> <title>GOVERNMENT ANNOUNCES TABLING OF LEGISLATION AGAINST BRIBERY OF FOREIGN PUBLIC OFFICIALS</title> </head> <body text="#000000" link="#0000ff" vlink="#551a8b" alink="#ff0000" bgcolor="#c0c0c0"> December 1, 1998 (6:00 p.m. EST) No. 277 GOVERNMENT ANNOUNCES TABLING OF LEGISLATION AGAINST BRIBERY OF FOREIGN PUBLIC OFFICIALS Foreign Affairs Minister Lloyd Axworthy, Minister of Justice and Attorney General of Canada Anne McLellan and International Trade Minister Sergio Marchi today announced the tabling in the Senate, by Deputy Leader of the Government in the Senate, Sharon Carstairs, of legislation criminalizing the bribery of foreign public officials. The Bill would establish a new Act of Parliament, the Corruption of Foreign Public Officials Act, which would create the new offence of bribery of foreign public officials in the course of business. By taking this step, Canada is fulfilling its commitment to support the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, which was negotiated at the Organization for Economic Co-operation and Development (OECD). "Corruption undermines good governance, endangers the stability of democratic institutions and weakens the moral foundations of society," said Minister Axworthy. "Canada has been a constant supporter of international anti-corruption efforts and seeks to be one of the first countries in a position to ratify this convention." "Around the world, Canada is well known as a leader in promoting accountability and honourable practices in the international arena," said Minister McLellan. "This Bill is consistent with Canada's tradition of upholding respect for justice and the rule of law, and ensures that we have the tools we need to carry out this commitment." "Canada actively seeks to encourage rules-based trade, which history has shown works in our favour," said Minister Marchi. "Reducing corruption will help level the playing field for Canadian businesses involved in international trade." Once these legal changes are made, Canada will be prepared to ratify the OECD Convention. The OECD Convention negotiations concluded on November 21, 1997, and Canada signed the Convention on December 17, 1997. The 29-member OECD, which includes Canada, the United States, most European countries, Japan and South Korea, is the major economic policy forum for the world's most advanced industrialized democracies. The OECD members develop compatible approaches on a wide range of economic, social and trade issues, including economic growth, employment, fiscal stability and the expansion of world trade. - 30 - A backgrounder is attached. For further information, media representatives may contact: <multicol cols="2" width="553" gutter="46"> </multicol> <multicol cols="2" width="553" gutter="46"> Debora Brown Office of the Minister of Foreign Affairs (613) 995-1851 Leslie Swartman Office of the Minister for International Trade (613) 992-7332 Media Relations Office Department of Foreign Affairs and International Trade (613) 995-1874 Pierre Gratton Office of the Minister of Justice and Attorney General of Canada (613) 992-4621 Doug Breithaupt Criminal Law Policy Section Department of Justice Canada (613) 957-4743 </multicol> This document is also available on the Department of Foreign Affairs and International Trade Internet site: http://www.dfait-maeci.gc.ca and on the Department of Justice Canada Internet site: http://canada.justice.gc.ca Backgrounder HIGHLIGHTS OF THE CORRUPTION OF FOREIGN PUBLIC OFFICIALS ACT The Bill introduced today proposes to create a new federal statute, the Corruption of Foreign Public Officials Act. This proposed legislation seeks to implement, in law, obligations Canada has undertaken by signing the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. The Convention was negotiated at the Organization for Economic Co-operation and Development (OECD) last year. Canada signed the Convention on December 17, 1997. New Act of Parliament The new Act will raise the profile in Canada of the OECD Convention and of the Government of Canada's commitment to combat international corruption and bribery at an international level. It has the flexibility to develop and evolve in the future if Canada wishes to sign and ratify additional international criminal law conventions against corruption. New Offence of Bribery of Foreign Public Officials The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions obliges Member states to make the bribery of foreign public officials a criminal offence. This provision appears in Section 3 of the Bill and is the centrepiece of the proposed Act. This provision prohibits the bribery of a foreign public official in the course of business. This offence would be punishable on indictment and carries a maximum penalty of five years imprisonment. This offence would, therefore, qualify as an extraditable offence. The proposed Act describes "facilitation payments" that would be exempted from the ambit of the offence. As well, it would not be an offence if the advantage were lawful in the foreign public official's country or public international organization. Reasonable expenses, incurred in good faith and directly related to the promotion, demonstration or explanation of products and services or to the execution or performance of a contract with the foreign state could also be argued as a defence. Proceeds of Crime Offences The Bill also proposes to create two additional criminal offences: the offence of possession of property or proceeds obtained or derived from the bribery of foreign public officials or from laundering that property or those proceeds; and the offence of laundering the property or proceeds obtained or derived from the bribery of foreign public officials. The Act incorporates the proceeds of crime provisions of the Criminal Code for use in prosecutions of the new offences. Other Provisions The Bill also proposes: to add the new offence of bribery of foreign public officials to the list of offences found in section 67.5 of the Income Tax Act in an effort to deny the tax deductibility of bribes paid to foreign public officials under Section 3 of this proposed Act. to extend the list of corruption-related offences defined as "enterprise crime offences" in the Criminal Code by adding proposed Sections 3, 4 and 5 of the new Act and by adding the following sections of the Criminal Code: -Section 123, municipal corruption; -Section 124, selling or purchasing office; and -Section 125, influencing or negotiating appointments or dealing in offices. This change would bolster Canada's arsenal of legal tools to combat corruption. to extend the list of corruption-related offences included in section 183 of the Criminal Code by adding proposed Sections 3, 4 and 5 of the new Act. Through the lawful use of a wiretap and other electronic surveillance, it will be easier for the police to gather evidence in these cases. Department of Justice December 1, 1998 </body> </html>

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