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In a surprising move, Donald Trump has directed the Department of Justice to pause the enforcement of an essential anti-corruption law designed to prevent Americans from bribing foreign officials to secure business.
“It’s going to mean a lot more business for America,” Trump remarked in the Oval Office after signing an executive order on Monday. He instructed Pam Bondi, the U.S. attorney-general, to suspend the enforcement of the Foreign Corrupt Practices Act (FCPA) from 1977.
A spokesperson from the White House explained, “Our national security is linked to American companies securing strategic advantages globally. President Trump is putting a stop to the excessive and unpredictable enforcement of the FCPA, which has held American businesses back.”
This decision ranks among the most aggressive policy shifts initiated by Trump’s administration. It questions the ability to combat unethical behavior in businesses effectively.
Historically, the FCPA has been a backbone for the Department of Justice in several major cases. For instance, it underpinned last year’s agreement with Trafigura, a commodities trading company that faced charges for bribing officials in Brazil to maintain operations with the state-run oil giant Petrobras.
In 2022, a former senior partner at McKinsey admitted guilt in a conspiracy under the FCPA related to widespread corruption during the tenure of South Africa’s former president, Jacob Zuma.
Also, in October, the US defense contractor RTX agreed to a $950 million settlement over allegations of bribing a Qatari official to secure arms sales and misrepresenting costs to the Pentagon, leading to overpayments for weapons like Patriot missile systems.
Pam Bondi is set to introduce new enforcement strategies aimed at boosting American competitiveness while efficiently managing federal resources. There’s also a plan to revisit current and past FCPA cases.
The official noted that American businesses have been harmed by “over-enforcement” of the act, as it restricts them from engaging in practices that are commonplace among their international competitors, resulting in an unfair playing field.
The White House emphasized the importance of strategic positions in critical infrastructure, such as vital minerals and deep-water ports, for national security.
These prosecutions under the FCPA have been costly to the economy, the official claimed, especially noting that last year the justice department and the Securities and Exchange Commission filed 26 actions related to the law.
The SEC, having established a dedicated unit in 2010 for FCPA enforcement, considers this a top priority. Last year, it charged a former executive of Azure Power Global, which was entwined in a case involving alleged bribery by Indian billionaire Gautam Adani. The DOJ also charged criminally.
Azure clarified that the implicated former employees were not part of the company for over a year, while the Adani Group branded the allegations as “baseless.”
Some legal experts suggest this case, initiated before Trump resumed his presidency, may ultimately depend on his administration’s stance.
Having numerous enforcement actions every year drained resources unfairly from companies and law enforcement agencies alike, the official asserted. They also reported that 31 companies faced FCPA-related investigations by the end of 2024.
The Department of Justice has not yet commented on the matter.
