What's a Facilitation Payment?

What's a Facilitation Payment?

A facilitating payment, facilitation payment, or grease payment is an unlawful, or at least questionable, payment to foreign officials which is not considered to be bribery according to the legislation of some states as well as in international anti-bribery conventions.

What is meant by facilitation payment?

A payment or consideration given to a government official or employee in order to get them to do what they should have done anyway. Unlike a bribe, the facilitation payment seeks no special consideration and is usually legal.

What is an example of a facilitation payment?

An example of a facilitation payment might be a business paying a customs official to release held goods. These held goods will generally be released anyway after the completion of all relevant procedures, but if the company wants them quickly, they may resort to offering a facilitation payment.

Alexander Ross
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Alexander Ross

Alexander Ross has covered the video game industry for a decade, writing deep dives on game design, esports tournaments, VR developments, and gaming culture.