Trump administration pauses prosecutions of individuals and entities bribing foreign officials News
United States Senate - Office of Dan Sullivan, Public domain, via Wikimedia Commons
Trump administration pauses prosecutions of individuals and entities bribing foreign officials

US President Donald Trump signed an executive order on Monday directing the Department of Justice (DOJ) to pause future  investigations and enforcements under the Foreign Corrupt Practices Act (FCPA), and review all existing ones. The FCPA was established in 1977 to outlaw the practice of bribing foreign government officials to assist in obtaining or retaining business by people and entities.

The order claims that over the years, the FCPA has been “stretched beyond proper bounds and abused in a manner that harms the interests of the United States.” Additionally, the order points out that FCPA punishes American citizens and businesses for what are considered routine business practices in other nations.

Under the order, any new FCPA investigations and enforcements shall be ceased, under the discretion of the Attorney General; all existing investigations and enforcements shall be reviewed; and updated policies to promote the president’s Article II authority to conduct foreign affairs shall be issued. The order also opens the door for the Attorney General to take remedial measures concerning past investigations.

Transparency International described FCPA as the US’s “first and best line of defense against international bribery” and stated that it “has served as a model for the world.” Additionally, the anti-corruption watchdog issued a report in 2022 noting a decline in US foreign anti-bribery laws enforcement:

It began to drop in 2020 and fell more sharply in 2021. FCPA enforcement penalties peaked in 2020 at US$7.13 billion and plummeted to US$461 million in 2021. Preliminary data suggests that U.S. enforcement is on the upswing again in 2022 but remains below pre-pandemic levels.

According to the DOJ’s website, 24 FCPA-related enforcement actions were implemented in 2024; 17 in 2023; 23 in 2022; 30 in 2021; 39 in 2020; and 65 in 2019.

FCPA allows the US to fulfill its international law anti-corruption obligation. The US is part of the United Nations Convention Against Corruption (UNCAC), and Article 16 of UNCAC obligates states to adopt measures to prohibit bribery of foreign public officials.

Senior research scholar at Columbia University and former anti-corruption coordinator at the Department of State, Richard Nephew, commented on the executive order, calling it a “horrible idea” and stating that “The United States should not try to outcompete bad guys in bribery.”

In September 2024, corruption law scholars criticized the US “double standard” attitude when it comes to FCPA enforcement.

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