Extortion

 

Extortion is a form of blackmail where one party makes threats against another party of adverse consequences unless the threatened party meets some demand.  This demand is usually for payment of money.  Some countries treat extortion as a bribery offence (the “demand” side of bribery).  Other countries treat it as a separate offence.

 

Example:   A customs official tells you that he will not provide customs clearance for your company’s equipment or materials (to which your company is entitled) unless you pay a bribe.  You refuse.  In this case, the official is likely to be guilty of extortion.  You will not be guilty of an offence.

 

Liability of party making the extorted payment:  If the victim of extortion pays as demanded, then it is likely that he or she will be liable for a bribery or facilitation payment offence.

Example:   A customs official tells you that he will not provide customs clearance for your company’s equipment or materials (to which your company is entitled) unless you pay a bribe.  You discuss this with a director of your company.  He instructs you to pay the bribe and you do so.  In this case, you, the director and your company are likely to be liable for a bribery or facilitation payment offence, and the official is likely to be liable for extortion and/or for a bribery or facilitation payment offence.

 

 Defence for party making the extorted payment:  If the party makes the extorted payment because he or she felt there was a threat of imminent death or personal injury, then he or she will in many countries have a defence to bribery. 

Example:  A policeman who is carrying a machine gun and is acting aggressively demands a payment in order to let you through a road block.  You pay him as you are afraid.  In this case, you are unlikely to be guilty of an offence.  The policeman will be guilty of extortion and possibly other offences.