Enforcement of Anti-Bribery Law on Hold for Revised Guidelines Development

President Trump has taken a significant step by issuing an executive order that instructs the Department of Justice to pause and reassess its enforcement of the Foreign Corrupt Practices Act (FCPA). The FCPA prohibits making payments to foreign government officials to secure or retain business deals. This law has been in effect since 1977, applying to all U.S. persons and certain foreign securities issuers. In 1998, the law was expanded to cover foreign entities and individuals involved in corrupt payments within U.S. territory.

Over the years, the Department of Justice has actively enforced the FCPA, resulting in over $1 billion in penalties for violations globally in the last year alone. The White House reported that in 2024, the DOJ and the Securities and Exchange Commission pursued 26 enforcement actions related to the FCPA, with an average of 36 actions per year over the past decade.

However, the executive order argues that the FCPA has been overused beyond its intended scope, negatively impacting U.S. interests. The EO expresses concerns about excessive FCPA enforcement against American businesses and citizens for routine business practices in other countries, leading to a waste of prosecutorial resources and harm to American economic competitiveness and national security.

In response to these concerns, the executive order mandates a 180-day review of guidelines and policies regarding FCPA investigations and enforcement actions. During this period, the Department of Justice is required to halt new FCPA investigations, review existing cases, and develop updated guidelines that align with the president’s foreign policy objectives and prioritize U.S. interests and economic competitiveness.

Following the issuance of revised guidelines, the Department of Justice will assess the need for additional actions to address previous FCPA investigations. The new Attorney General, Pam Bondi, has already directed the FCPA Unit to prioritize investigations related to foreign bribery that aids criminal operations of cartels and transnational criminal organizations while shifting focus away from cases lacking such connections.

Overall, President Trump’s executive order marks a significant development in the enforcement of the FCPA, aiming to balance the need for anti-bribery measures with protecting American interests and economic competitiveness. The review and revision of FCPA enforcement guidelines demonstrate a commitment to restoring proper enforcement boundaries and ensuring the efficient use of law enforcement resources.