In a move that has stirred both support and controversy, U.S. President Donald Trump on Monday signed an executive order directing the U.S. Department of Justice to cease prosecutions under the Foreign Corrupt Practices Act (FCPA) of 1977. This directive aims to pause legal actions against Americans accused of bribing foreign officials for business gains until new enforcement guidelines are established by Attorney General Pam Bondi.
The executive order states, “Future FCPA investigations and enforcement actions will be governed by this new guidance and must be approved by the attorney general.” The rationale behind this policy shift, as outlined in a White House factsheet, is to address perceived disadvantages faced by U.S. companies in international markets due to the FCPA’s stringent anti-bribery provisions. The factsheet argues that the law creates “an uneven playing field” because it prevents U.S. firms from engaging in practices that are more commonly accepted among their international competitors.
According to the White House’s perspective, “American national security depends on America and its companies gaining strategic commercial advantages around the world,” and this move by Trump aims to reduce what they describe as “excessive, unpredictable FCPA enforcement” that hampers U.S. competitiveness.
However, this decision has faced significant backlash from anti-corruption groups. Transparency International, a prominent watchdog, has criticized the move, highlighting the FCPA’s role in establishing the United States as a leader in combating global corruption. Gary Kalman, the executive director of Transparency International US, expressed concerns in a statement, warning that Trump’s order “diminishes—and could pave the way for completely eliminating—the crown jewel in the US’s fight against global corruption.”
This executive order is part of a series of actions by President Trump aimed at altering U.S. policy on international business and ethics. Recent weeks have seen Trump signing multiple executive orders, including one to dismantle the U.S. Agency for International Development, indicating a broader shift in U.S. foreign and economic policy.
The decision to alter the enforcement of the FCPA has ignited a debate on the balance between promoting business interests and maintaining ethical standards in international commerce. Critics argue that this could lead to a slippery slope where U.S. companies might resort to corrupt practices to compete, potentially damaging the country’s reputation and undermining global anti-corruption efforts.
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