Racing to the bottom?
Trump to pause enforcement of law banning bribery of foreign officials
https://www.cnbc.com/2025/02/10/trump-d ... pause.html
- President Donald Trump will sign an executive order directing the Department of Justice to pause enforcing a nearly half-century-old law that prohibits American companies and foreign firms from bribing officials of foreign governments to obtain or retain business.
- The pause will be implemented to avoid putting U.S. businesses at an economic disadvantage to foreign competitors.
- Trump reportedly will tell Attorney General Pam Bondi to prepare new guidelines for Foreign Corrupt Practices Act enforcement.
Summary:
President Donald Trump is set to sign an executive order directing the Department of Justice to pause enforcing
the Foreign Corrupt Practices Act (FCPA) on Monday, January 30, 2025. The pause is intended to prevent putting US
businesses at an economic disadvantage compared to foreign competitors. This move comes after Bloomberg reported
that Trump would ask Attorney General Pam Bondi to review current and past actions related to the law while
preparing new guidelines for enforcement.
The FCPA, enacted in 1977, aims to prevent corruption by requiring companies to prevent bribery of foreign
officials to obtain or retain business. The law applies not only to direct bribes but also to offers or plans
authorized by company management.
The pause in enforcement is a significant shift, as the DOJ has been taking action against FCPA violations since
2023 and 2024, with 34 cases announced in 2024 and 17 in 2023. Violators of the FCPA can face up to 15 years in
prison and fines of up to $250,000.
The decision is seen as an effort to streamline the law to align with economic interests and national security,
rather than its original intent to prevent public corruption. The move is expected to impact US businesses
operating overseas and could have implications for foreign firms doing business in the United States.