Citing the need for a level playing field in access to critical minerals, deep-water ports and other key infrastructure or assets, the Trump Administration has paused the enforcement of the Foreign Corrupt Practices Act of 1977 (FCPA) until August, with a possible extension to February 2026.
The FCPA, which was passed on the heels of numerous corporate corruption disclosures, makes it unlawful for any corporate officer, director, employee, company agent, or company shareholder “to offer, pay, or promise to pay money or anything of value to any foreign official for the purpose of obtaining or retaining business.”
The “over expansive and unpredictable FCPA enforcement against American citizens and businesses—by our own Government—for routine business practices in other nations not only wastes limited prosecutorial resources that could be dedicated to preserving American freedoms, but actively harms American economic competitiveness and, therefore, national security,” wrote Trump in the executive order.
Under the executive order, US Attorney General Pam Bondi has until Aug. 9 to review the guidelines and policies that govern FCPA investigations and enforcement actions and issue updated guidelines as appropriate to promote Article II authority to conduct foreign affairs. Bondi can extend her deadline for another 180 days if necessary. Upon updating the guidance, Bondi will decide whether the Department of Justice’s remedial actions are needed for previous FCPA investigations and enforcements or if presidential actions are required.
According to the authors of a post on the law firm Case & White’s blog, companies should continue to use their usual business policies.
“Notwithstanding the administration’s dramatic shift in approach to FCPA enforcement, companies should remain focused on anti-bribery and corruption compliance and, as warranted, internal investigations, given the five-year statute of limitations for FCPA offenses and the ability to toll that period for up to an additional three years, the US Securities and Exchange Commission’s parallel enforcement authority with respect to issuers (at least for now), and enforcement regimes in foreign countries and at multilateral development banks,” they wrote.
