Enforcement of the Foreign Corrupt Practices Act (15 U.S.C. 78dd-1 et seq) (“FCPA”) has been halted subject to an executive order issued on February 10, 2025, by President Donald Trump (the “Executive Order”). Aimed at combating bribery and corruption in international business, the FCPA has long stood as a pillar of U.S anti-bribery legislation. Enacted in 1977, the statute ensures that U.S. companies maintain ethical standards when conducting business abroad. This is why the recent Executive Order has reignited debate over the law’s impact on American businesses and its role in promoting global integrity.
What is the Foreign Corrupt Practices Act (FCPA)?
The FCPA prohibits U.S. companies, individuals, and certain foreign entities from offering bribes to foreign officials to gain business advantages. The law covers not only direct bribes but also payments made through intermediaries. Additionally, the FCPA mandates accurate financial record-keeping and robust internal controls to prevent corrupt practices. Enforced by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), violations can result in severe penalties, including hefty fines and prison sentences.
President Trump’s Executive Order
The rationale given, in the wording of the Executive Order, for freezing of enforcement of the FCPA is due its “over expansive and unpredictable” prosecution against American businesses and individuals for “routine business” practices that are said to amount to a waste of limited prosecutorial resources. Furthermore, this was said to harm not only American competitiveness but also national security. The Executive Order provides that within the 180 days of the review of guidelines and policies governing FCPA enforcement, the Attorney General should:
- cease new FCPA investigations and enforcement actions unless the Attorney General makes an individual exception;
- review and take action with respect to all ongoing FCPA investigations and enforcement actions to ensure they are within the proper bounds of FCPA enforcement and presidential foreign policy prerogatives; and
- issue guidelines or polices to promote the president’s constitutional authority to promote foreign affairs, American economic competitiveness and the efficient use of federal law enforcement resources.
Also contained in the Executive Order is imprimatur for the Attorney General to extend the 180-day moratorium on enforcement of the FCPA for another 180 days, as well as perfunctory language regarding the manner and legal effect of its application.
Similar Legislation
Globally, the FCPA has inspired similar anti-bribery laws. The United Kingdom’s Bribery Act, France’s Sapin II, and Brazil’s Clean Company Act reflect a growing international commitment to eradicating corruption. The recently enacted Foreign Extortion Prevention Act (“FEPA”) in the U.S. complements the FCPA by criminalizing the solicitation of bribes by foreign officials, thereby addressing the ‘demand side’ of bribery. Together, these laws constitute part of the comprehensive legal framework aimed at fostering fair competition and transparency in global commerce.
The FCPA as it Relates to White Collar Crime
The FCPA is a cornerstone of white-collar crime enforcement, with numerous high-profile cases illustrating its reach. For example, RTX (formerly Raytheon) paid over $300 million in 2024 to settle allegations of bribing Qatari officials through sham contracts. Similarly, Walmart’s $282 million settlement in 2019 highlighted its efforts to secure store permits in Mexico, India, and Brazil through illicit payments. These cases underscore the FCPA’s role in holding corporations accountable and deterring corrupt practices.
Proponents of the Executive Order argue that this pause will level the playing field for American companies, while critics warn of increased corruption and reputational damage. The long-term implications depend on whether the administration implements new enforcement guidelines or extends the pause indefinitely.
Conclusion
Given these uncertain times, if you have questions regarding the impact of this legislation, the FCPA or FEPA, or white-collar crime in general, reach out to one of the attorneys in our litigation department at Romano Law PLLC.
