Trump pauses FCPA enforcement to 'restore' American competitiveness

In March 2025, following directives from former President Donald Trump, the enforcement of the Foreign Corrupt Practices Act (FCPA) was put on hold as part of a broader review of FCPA policies and guidelines. The Executive Order established a 180-day period for the Attorney General to evaluate existing investigations and enforcement actions. This move is purportedly aimed at enhancing American business competitiveness on the global stage. However, it raises concerns about the potential long-term impacts on foreign corruption enforcement, as past evidence suggests that such enforcement has benefitted U.S. companies by protecting their interests abroad. Despite Trump's criticisms of the FCPA during his presidency, data indicates that enforcement actions initiated by the Department of Justice (DOJ) actually increased during his first term. From 2017 to 2020, the average number of FCPA actions per year was 33, significantly higher than the averages during Joe Biden and Barack Obama's administrations. These statistics demonstrate a contradiction between Trump’s public disapproval of the FCPA and the actual enforcement practices of his administration. The temporary suspension of FCPA enforcement could lead to delays in ongoing investigations and trials, an aspect already visible in cases involving former executives from companies like Cognizant Technology Solutions and Corsa Coal. In these instances, defense counsel have strategically utilized the pause to seek continuances, potentially affecting the outcomes of their trials. As the DOJ moves to implement this pause, the Securities and Exchange Commission (SEC) has indicated that it will likely follow DOJ's lead regarding enforcement actions, signaling a comprehensive shift in the approach to foreign corruption issues. Moreover, previous administrations have similarly reviewed FCPA enforcement strategies, frequently claiming to vigorously prosecute cases of foreign bribery. However, the tangible effects of such promises on enforcement statistics have been negligible. The pause initiated by Trump suggests a possible shift toward concentrating enforcement elsewhere, potentially decentralizing it from the FCPA Unit, which could further complicate the prosecution of foreign corruption. This balance between fostering competitiveness and maintaining robust corruption enforcement seems precarious during this pivotal review period.