Foreign Corruption: Canada's Top Court Shields Top Bank and Whistleblowers

A recent unanimous ruling by the Supreme Court of Canada ("SCC") delivered a significant legal victory for international institutions in the fight against corruption, upholding legal immunities which protect the World Bank's records and personnel from the reach of Canadian legal proceedings.

The case of World Bank Group v. Wallace, 2016 SCC 15, arose from the prosecution of four individuals under Canada's Corruption of Foreign Public Officials Act ("CFPOA") in relation to alleged bribery of government officials in Bangladesh. The CFPOA was strengthened in 2012 and the Canadian authorities have significantly increased enforcement of the law in recent years. Three of the accused were former employees of a Canadian company, and the fourth was a representative of a Bangladeshi official. The alleged bribery occurred in relation to a supervision contract for the US$3 billion Padma Multipurpose Bridge construction project in Bangladesh. The World Bank was one of the bridge project's main financial backers.

The alleged...