Facilitation payments are often indistinguishable from bribes. As bribery and corruption becomes a key concern for firms doing business globally, issues such as facilitation payments and their recording can pose a challenge to companies. As the global legislation around bribery and corruption continues to increase, with many countries developing their own set of rules and regulations on what is and is not acceptable, companies need to ensure they are compliant with these laws in the markets they operate.
Compliance with Anti-Bribery Legislation
Overview of the anti-bribery legislations
The most prominent of these legislations are the US Foreign Corrupt Practices Act, 1977 (FCPA) and the UK Bribery Act, 2010 (pdf,148KB). Both laws attempt to define the scope of what constitutes a bribe and the corresponding penalties, maintenance of books and records and jurisdiction of applicability.
While the FCPA covers public bribery offences, the UK Bribery Act covers commercial bribery as well as bribery of public officials and prohibits facilitation payments. Additionally, the jurisdiction of the UK Bribery Act is extra-territorial providing UK authorities with the ability to pursue an act of bribery by British nationals, companies, or residents irrespective of place of offence.
The Prevention of Corruption (Amendment) Act, 2018 (Amendment Act), which came into effect on 26 July 2018, seeks to bring the Indian anti-corruption legal framework in conformity with current international practices laid down by the United Nations Convention Against Corruption. The Amendment Act has introduced the concept of corporate liability, covering all categories of corporate organizations incorporated in India or carrying out business in India. With the Amendment Act coming into effect, corporate organizations will not be able to take the plea that such bribery and corruption instances are individual offences, except when it can prove that it had adequate compliance procedures and safeguards in place to prevent its associated persons from such conduct.
Why KPMG in India

Our Anti-bribery and corruption (ABC) consultancy service includes:
Proactive services
Reactive service
Investigation of alleged/suspected instances of non-compliances by individuals and corporates.

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