Trump Halts Enforcement of Foreign Corrupt Practices Act to Boost Economic Competitiveness
President Trump issued an executive order halting the enforcement of the Foreign Corrupt Practices Act, claiming it hinders U.S. companies' competitiveness abroad. The directive redirects FCPA investigations toward foreign bribery linked to organized crime.
President Donald Trump signed an executive order on Monday evening pausing the enforcement of the Foreign Corrupt Practices Act, which criminalizes bribing foreign officials. Trump argued that the law disadvantaged U.S. companies in global markets.
Newly confirmed Attorney General Pam Bondi was directed to cease actions stemming from the Act, emphasizing that investigations of American entities engaged in foreign business practices deter American competitiveness.
"It sounds good on paper, but in practicality, it's a disaster," Trump stated. He criticized the law as outdated and claimed that it inhibits American businesses from engaging with international partners.
The White House explained that the new order aims to enhance U.S. economic competitiveness by developing revised enforcement guidelines for the 1977 Act. This move is viewed as an attempt to foster strategic economic advantages and mitigate the excessive enforcement that has hindered American companies.
Transparency International U.S. executive director Gary Kalman criticized the order, calling it a potential move towards eliminating a crucial tool in the fight against global corruption, which has globally influenced the standards of business conduct.
The directive from Bondi indicates a shift in prosecutorial focus towards foreign bribery associated with transnational criminal organizations, rather than traditional corporate violations.
Over the last decade, the Justice Department has conducted an average of 36 enforcement actions yearly under the FCPA, raising concerns about resource allocation for both companies and law enforcement.
Trump's administration has faced previous scrutiny for its stance on corruption enforcement, with Bondi previously reducing FCPA investigations. The new approach is expected to greatly affect ongoing international legal cases and corporate compliance measures.
