On 10 February 2025, U.S. President Trump issued an executive order asking Attorney General Pam Bondi to suspend all enforcement of the Foreign Corrupt Practices Act (FCPA) until she gives new guidelines.
According to critics, clipping the scope of the Department of Justice’s (DOJ) enforcement of the FCPA delivers a significant setback to the fight against foreign bribery worldwide. It threatens decades of advancement in tackling cross-border corruption and positions international stability at risk. This break will work to the benefit of unscrupulous business actors around the world who until now were afraid of U.S. criminal pursuits.
How does the FCPA function?
The Foreign Corrupt Practices Act (FCPA) was introduced in 1977. The main objective of the act was to address widespread foreign bribery by multinationals that were found in the wake of the Watergate scandal. It was the first regulation of its kind in the world, and bans U.S. businesses, individuals, and foreign companies with a U.S. link from bribing foreign public officials.
The FCPA was made international in 1997 with the adoption of the OECD Anti-Bribery Convention which now has 46 parties. By stopping enforcement, the U.S. administration is threatening the country’s commitments under the Convention, as well as under the UN Convention against Corruption.
How does the FCPA help combat foreign bribery?
The FCPA has a crucial role to play in holding companies accountable, ensuring that they face repercussions for their corrupt actions and a sense of justice for victims. In a recent FCPA case, a multinational mining business was found to have given bribes to officials in nations such as the Democratic Republic of Congo and Nigeria to obtain lucrative business contracts.
As the firm was U.S.-listed, authorities were empowered to take action under the FCPA. The case highlighted the profound human cost of corruption, as the company’s activities not only damaged fair competition but also led to environmental damage and exploitation of local employees in some of the world’s poorest areas.
What are the criticisms of suspending FCPA enforcement?
The U.S. has long been considered a global leader in foreign bribery enforcement. For close to two decades, prosecution by the DOJ has demonstrated a deterrent for domestic and foreign businesses alike, resulting in billions of dollars in damages. Placing the brakes on its implementation efforts will switch off years of progress in advancing fair competition among the private sector in their connections with public institutions globally.
The executive order sets a six-month suspension on foreign bribery investigations by the Justice Department. The vast majority of FCPA cases will be stopped while Attorney General Pam Bondi conducts a reexamination and revises enforcement guidelines. The executive order provides Bondi discretion to raise the pause for an additional six months.
Critics argue that U.S. enforcement of the FCPA has long been a benchmark for other countries in the fight against corruption. Cutting it will authorize wrongdoers and send a dangerous indication that bribery is back on the table.
Foreign bribery is by no standards, as indicated by last night’s decision, a routine business practice. This is a disloyalty to U.S. leadership in global anti-corruption measures and a gift to those who benefit from bribery and illicit financial discharges. This difficult course needs to be immediately changed.