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Unpublished Paper
ILLUMINATING CORRUPTION PATHWAYS: MODIFYING THE FCPA’S “GREASE PAYMENT” EXCEPTION TO GALVANIZE ANTI-CORRUPTION MOVEMENTS IN DEVELOPING NATIONS
ExpressO (2012)
  • Ivan Perkins
Abstract

The Article proposes a new web-based reporting and publication system for “grease” or “facilitating” payments under the Foreign Corrupt Practices Act (“FCPA”). The FCPA penalizes the bribery of foreign government officials, but contains an exception for facilitating payments, made to expedite “routine governmental actions” such as mail or telephone services. Noting the ambiguities within the exception, many commentators and practitioners have called for its abolition. The Article proposes a different solution: entities making facilitating payments should be required to report these payments to the Department of Justice (“DOJ”). Then, the DOJ would publish this information on a website, with graphics displaying the number, amount, and purpose of payments, and the public-sector agencies around the world receiving them. By illuminating these ordinarily secretive transactions, the program would seek to inspire, galvanize, and focus anti-corruption efforts within developing nations, and to highlight the U.S. Government’s participation in the international struggle against corruption.

Keywords
  • FCPA,
  • international trade,
  • corruption,
  • facilitation payments,
  • grease,
  • reporting and publication system
Disciplines
Publication Date
August 7, 2012
Citation Information
Ivan Perkins. 2012. "Illuminating Corruption Pathways: Modifying the FCPA's 'Grease Payment' Exception to Galvanize Anti-Corruption Movements in Developing Nations." Cardozo J. Int'l & Comp. Law (forthcoming).