U.S. President Donald Trump has signed an executive order to pause prosecutions of American companies accused of bribing foreign officials. The move affects the Foreign Corrupt Practices Act (FCPA), a law that has been in place for nearly 50 years.
This order halts the enforcement of the FCPA and directs Attorney General Pam Bondi to review past and ongoing cases related to the law. The Justice Department will also create new guidelines for how the law will be enforced moving forward.
The FCPA, passed in 1977, prohibits U.S. companies from bribing foreign government officials in exchange for business. Over time, it has become a cornerstone in the fight against global corruption and has shaped the way American businesses operate overseas.
While signing the order in the Oval Office on Monday, Trump said, “It’s going to mean a lot more business for America.” He has long criticized the law, calling it a “horrible law” and claiming that “the world is laughing at us” for enforcing it.
The decision has sparked mixed reactions. Anti-corruption group Transparency International expressed concern, saying that the FCPA has helped position the U.S. as a leader in fighting corruption globally. Gary Kalman, the group’s U.S. director, warned that the order could significantly weaken, or even eliminate, the U.S. approach to global corruption.
The White House, however, argued that the law hinders U.S. competitiveness. A White House fact sheet claimed that the FCPA makes American companies less competitive because it prevents them from engaging in practices common among international businesses. The sheet also stated that the order aims to establish “reasonable enforcement guidelines” that will level the playing field for U.S. firms abroad.
Many multinational companies, including major names like Goldman Sachs, Glencore, and Walmart, have faced scrutiny under the FCPA. In 2024 alone, the Justice Department and the Securities and Exchange Commission launched 26 FCPA-related enforcement actions, and at least 31 companies were under investigation by the end of the year.
Industry experts are divided on the impact of the order. Mikko Ruotsalainen, Director of Risk Advisory at BDO Finland, called the decision a “mistake,” warning that easing the law could increase corruption, raise trading costs, and create instability in international markets.
Meanwhile, Richard Bistrong, CEO of Front-Line Anti-Bribery LLC, noted that many companies had not even been advocating for such changes. He suggested that businesses would be unlikely to make significant changes to their compliance operations as a result of the new guidelines.
As the Justice Department works to develop new enforcement standards, the future of the FCPA remains uncertain, with the global business community closely watching the evolving situation.
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