The word TIPS is an acronym To Insure Proper Service. Many overseas employees encounter the issue of bribing someone to get something done. It could be from the installation of a telephone line to getting a letter delivered to the right authority. FCPA and compliance to EU directives and the corresponding laws are such a vital part of chief compliance officers’ jobs these days.

A lot of companies insist that their employees put up with this sort of hassle on an almost daily basis because the alternative is a violation of local law. Facilitation Payments are never a good thing in the world of compliance because:

• These payments provide incentives for low level government officials to make more demands
• The price of other transactions goes up.
• Bribes have several security implications coupled with the inherent illegality of these payments under local laws of several countries.