IMPORTANT DEVELOPMENT IN CFPOA
The first prosecution and jail time for an individual (Nazier Karigar re air india, here) under canada’s 15 yr old corrpution of foreign public officials act (CFPOA). There have been three corporate charges or settlements since inception of the act in 1999. Griffiths Energy International Inc. in 2013, SNC-Lavalin in 20013, and Niko resources ltd. in 2011 and Hydro Kleen in 2005. No doubt there will be more, as this minimal precedent will not be seen as a strong deterent for a practice that is still widely defended in canada and throught the world and is still very profitable. in fact, bribery payments were a legal businss expence to 1986 (search McLeaod and wishart of Dentons Canada and “Foreign anti-cprruption compliance: director and officer obligation and considerations”.)
If you are interested in this topic and the implications for canadian corporate directors and officers, please search this site for my previous blogs or call me directly.
Greg Shields is a D&O, Professional Liability and Crime insurance specialist and a Partner at the University and Dundas (Toronto) branch of Mitchell Sandham Insurance Services. He can be reached at firstname.lastname@example.org 416 862-5626, or Skype at risk.first. And more details of risk and loss control can be found on the Mitchell Sandham blog at http://mitchellsandham.com/
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