Instant Insight
30-Second Take
- President Trump has issued an executive order pausing all new Foreign Corrupt Practices Act (FCPA) investigations and enforcement actions.
- The order aims to align FCPA enforcement with U.S. national security and economic competitiveness.
- The Attorney General has been directed to review and update FCPA guidelines within 180 days.
+ Dive Deeper
Quick Brief
2-Minute Digest
Essential Context
On February 10, 2025, President Trump issued an executive order titled “Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security.” This order halts the initiation of new FCPA investigations and enforcement actions for 180 days, pending a comprehensive review and the issuance of new guidelines.
Core Players
- President Trump – Issued the executive order
- Attorney General Pam Bondi – Directed to review and update FCPA guidelines
- U.S. Department of Justice (DOJ) – Responsible for enforcing the FCPA
- U.S. Companies – Affected by FCPA enforcement and new guidelines
Key Numbers
- 180 days – Duration of the freeze on new FCPA investigations and enforcement actions
- February 10, 2025 – Date of the executive order
- February 5, 2025 – Date when the Attorney General directed the DOJ to prioritize corruption linked to transnational criminal organizations and narcotics trafficking cartels
+ Full Analysis
Full Depth
Complete Coverage
The Catalyst
The executive order was prompted by concerns that current FCPA enforcement practices impede U.S. foreign policy objectives and harm American economic competitiveness. President Trump’s order argues that overexpansive FCPA enforcement has imposed significant costs on the U.S. economy and hindered U.S. companies’ ability to gain strategic advantages globally.
Inside Forces
The Attorney General, Pam Bondi, has been instructed to review all existing FCPA investigations and enforcement actions. This review aims to restore what the administration sees as proper bounds on FCPA enforcement and preserve presidential foreign policy prerogatives. Bondi has also been directed to prioritize foreign corruption enforcement linked to transnational criminal organizations and narcotics trafficking cartels.
Power Dynamics
The new policy realignment underscores President Trump’s administration’s “America first” approach, emphasizing national security and economic competitiveness. The Attorney General now holds significant power in authorizing any new FCPA investigations or enforcement actions after the revised guidelines are issued.
Outside Impact
The pause in FCPA enforcement and the forthcoming guidelines are expected to have broad implications for U.S. companies operating internationally. Companies may see a shift in enforcement priorities, with less emphasis on traditional foreign corruption cases and more focus on investigations involving transnational criminal organizations and cartels. This could impact corporate compliance strategies and international business operations.
Future Forces
Looking ahead, the updated FCPA guidelines will likely incorporate a policy of enforcement discretion that considers the potential foreign policy implications of proposed enforcement actions. Federal prosecutors will be directed to analyze the geopolitical sensitivities of cases and the potential adverse consequences to U.S. national security. This could lead to significant changes in how FCPA cases are handled and resolved.
- Potential dismissal or restructuring of past FCPA actions with significant geopolitical sensitivities.
- Increased focus on eliminating transnational criminal organizations and cartels.
- Consideration of access to critical resources like rare-earth minerals and deep-water ports in enforcement decisions.
Data Points
- February 10, 2025 – Date of the executive order pausing FCPA enforcement.
- February 5, 2025 – Date when the Attorney General directed the DOJ to prioritize corruption linked to transnational criminal organizations and narcotics trafficking cartels.
- 180 days – Duration of the freeze on new FCPA investigations and enforcement actions.
- Article II authority – Constitutional basis cited for the president’s power over foreign affairs.
President Trump’s administration’s decision to pause FCPA enforcement and realign enforcement priorities marks a significant shift in the approach to foreign corruption. As the new guidelines are developed, companies and stakeholders will need to adapt to a changing regulatory landscape that prioritizes U.S. national security and economic competitiveness.
