WASHINGTON: US President Donald Trump has signed an executive order directing the Justice Department to pause prosecutions of Americans accused of bribing foreign government officials to secure or maintain business in their countries.
The order suspends enforcement of the nearly half-century-old Foreign Corrupt Practices Act (FCPA) and instructs Attorney General Pam Bondi to review past and current actions related to the law and draft new enforcement guidelines.
Enacted in 1977, the law prohibits companies operating in the US from bribing foreign officials. Over time, it has become a guiding principle for how American businesses conduct operations overseas.
“It’s going to mean a lot more business for America,” Trump said while signing the order in the Oval Office on Monday.
Trump had previously sought to repeal the FCPA during his first term, calling it a “horrible law” and stating that “the world is laughing at us” for enforcing it.
Reactions to Trump’s Decision
Anti-corruption watchdog Transparency International said that FCPA had made the US a leader in tackling global corruption.
Trump’s executive order “diminishes — and could pave the way for completely eliminating — the crown jewel in the US fight against global corruption,” said Gary Kalman, executive director of Transparency International US.
A White House factsheet stated that the law puts American companies at a disadvantage.
“US companies are harmed by FCPA over-enforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field,” the factsheet said.
Trump’s order calls for “revised, reasonable enforcement guidelines” from the Justice Department to ensure that American businesses remain competitive abroad, the factsheet added.
Over the years, multinational corporations such as Goldman Sachs, Glencore, and Walmart have faced scrutiny from the Justice Department due to the law.
According to the White House, in 2024, the Justice Department and Securities and Exchange Commission filed 26 FCPA-related cases, with at least 31 companies under investigation by year-end.
Mikko Ruotsalainen, Director of Risk Advisory at BDO Finland, criticized the decision, calling it a “mistake” and warning that corruption increases trade costs and creates instability.
Meanwhile, Richard Bistrong, CEO of Front-Line Anti-Bribery LLC, pointed out that most firms had not even pushed for the change and were unlikely to overhaul their compliance operations.
