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 gshields@mitchellsandham.com 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 https://mitchellsandham.com/
CAUTION: This article does not constitute a legal opinion or insurance advice and must not be construed as such. It is important to always consult a registered and truly independent insurance broker and a lawyer who is a member of the Bar or Law Society of the relevant jurisdiction with regard to this material before making any insurance or legal decisions. All material is copyrighted by Mitchell Sandham Inc. and may not be reproduced in any form for commercial purposes without the express written consent of Mitchell Sandham Inc. Anyone seeking to link this document from any external website must receive the consent of Mitchell Sandham Inc. by sending an e-mail to gshields@mitchellsandham.com.
