Facilitation payment

Facilitation payment

A facilitation payment is an ethically questionable payment made in order to procure or speed up the provision of services.

A distinction is generally drawn between facilitation payments and outright bribery and corruption. In many countries it may be considered normal (and actually be legal) to provide small unofficial payments in certain circumstances. A multinational company may be prohibited by law from making such payments in its home country, and therefore encounters an ethical problem when doing business in a country in which facilitation payments are a part of the business process.

See also: Foreign Corrupt Practices Act, business ethics.


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