A facilitating payment is a payment made to secure the performance of a routine governmental action of a minor nature, which the payer is legally entitled to receive.
This term is typically used in the context of bribery and corruption, as facilitating payments are often made in order to secure the performance of a routine governmental action, such as processing a visa application or issuing a building permit. While such payments are not strictly illegal, they may violate anti-corruption laws if they are made with the intention of securing an improper advantage.
Why would a business make facilitating payment to other agencies?
There are a few reasons why a business might make facilitating payments to other agencies:
1. To grease the wheels of bureaucracy: In many countries, it is not uncommon for businesses to make small payments (known as "facilitating payments") to government officials in order to speed up the bureaucratic process. For example, a business might make a facilitating payment to a government official in order to get a construction permit more quickly.
2. To win a government contract: In some countries, businesses may make facilitating payments to government officials in order to win a government contract.
3. To avoid harassment: In some countries, businesses may make facilitating payments to government officials in order to avoid harassment or other problems.
4. To gain a competitive advantage: In some countries, businesses may make facilitating payments to government officials in order to gain a competitive advantage over their rivals.
5. To gain access to government officials: In some countries, businesses may make facilitating payments to government officials in order to gain access to those officials and to cultivate a relationship with them.
What is ABAC risk assessment? ABAC risk assessment is the process of identifying, assessing, and managing the risks associated with an activity, product, or service. It is a key component of an effective risk management program and helps organizations make informed decisions about how to allocate resources to minimize potential losses.
ABAC risk assessments consider all potential risks, including financial, operational, legal, and reputational risks. They also consider the likelihood and severity of each type of risk, as well as the organization's ability to control or mitigate the risks.
ABAC risk assessments are typically conducted by a team of experts with knowledge in various fields, including finance, accounting, law, and risk management. The team works together to identify all potential risks and to develop strategies to mitigate or eliminate those risks.
ABAC risk assessments are an important tool for organizations of all sizes. They can help organizations identify areas of potential exposure and develop plans to protect themselves from potential losses.
What is considered a facilitating payments?
A facilitating payment is a payment made to secure the performance of a routine governmental action of a minor nature that is not part of an official's discretionary powers, and the payment is not made to induce the official to act contrary to law or regulation. Facilitating payments are also sometimes referred to as "grease payments." Is facilitating payment a bribe or not? There is no simple answer to this question as it depends on the specific circumstances of each case. Generally speaking, facilitating payments are small bribes paid to low-level officials in order to speed up the completion of a routine service. While these payments are technically illegal, they are widely considered to be a necessary evil in many countries where corruption is rampant. As such, many businesses choose to turn a blind eye to such payments as long as they are within reason.
What is passive bribery? Passive bribery occurs when a person or company offers, promises, gives, or accepts a bribe in order to influence the actions of a public official. The official does not need to be bribed in order for the crime to be committed; simply offering the bribe is enough. This type of bribery is often seen in conjunction with active bribery, which is when a public official actively solicits a bribe.