Navigating Through Corruption: An Analysis of Anti-Corruption Criminal Laws in the Port Setting and the BIMCO Anti-Corruption Clause for Charter Parties

Abstract

Corrupt public officials in certain ports are known to sometimes make demands for payments in order for ships or cargo to be processed. Such a demand results in a dilemma for the ship owner and charterer in that resisting the demand could have substantial economic consequences whereas complying with it could mean violating one or more criminal anti-corruption laws. This paper examines the issue of port corruption, discusses important anti-corruption conventions and legislation, identifies key legal differences between conventional bribery and facilitation payments, and discusses contractual terms that may govern between the ship owner and charterer should a public official demand an illegal payment. These topics and other are presented using the BIMCO Anti-Corruption Clause for Charter Parties as a basis.