On Monday, President Donald Trump signed an executive order that temporarily halts the enforcement of a decades-old law that prevents bribery of foreign officials by American companies.
“It sounds good, but it hurts the country,” he stated.
He also noted that many business deals are hindered because companies fear legal repercussions from U.S. anti-corruption efforts.
“Many, many deals are unable to be made because nobody wants to do business, because they don’t want to feel like every time they pick up the phone, they’re going to jail,” Trump added.
A White House spokesperson explained that this pause is intended “to better understand how to streamline the FCPA to make sure it’s in line with economic interests and national security.” The goal is to prevent U.S. businesses from being disadvantaged compared to their international competitors.
Background on the Foreign Corrupt Practices Act (FCPA)
The FCPA was enacted in 1977 and prohibits Americans and certain foreign entities from bribing foreign officials for business advantages. Over time, it has become a cornerstone of ethical practices for American companies operating globally.
The law applies not only to direct bribes but also includes offers or plans authorised by company management. Its scope extends broadly across various actions involving foreign officials.
Both individuals and corporations can face prosecution under this law. Penalties include up to 15 years imprisonment and significant fines—either $250,000 or three times the value demanded by a foreign official.
In recent years, enforcement actions have been notable. For instance, there were 24 cases related to alleged FCPA violations announced in 2024 alone.
Critics argue that easing enforcement could undermine global efforts against corruption initiated by laws like the FCPA. However, proponents see it as necessary for maintaining competitive parity with other nations where such practices may be more common.
As Attorney General Pam Bondi reviews existing cases under new guidelines, there will likely be further discussions on how these changes affect both domestic policy and international relations regarding corruption prevention efforts.