On February 10, 2025, President Donald Trump issued an executive order pausing enforcement of the Foreign Corrupt Practices Act (FCPA) for at least 180 days. This move has sparked intense debate over whether it effectively legalizes bribery for American businesses operating overseas—or if it simply removes what some see as unnecessary obstacles to US economic competitiveness.
What Is the FCPA?
Enacted in 1977, the FCPA prohibits American companies from bribing foreign officials to secure business deals. The law was designed to combat corruption and level the playing field, preventing unethical business practices that could undermine international markets. However, in recent years, FCPA enforcement has expanded significantly, with aggressive prosecutions and massive fines imposed on US companies and executives.
While the law was initially intended to target clear cases of corruption, critics argue that it has been stretched too far, punishing companies for common business practices in countries where informal payments are often the norm. Some US businesses believe that strict FCPA enforcement has put them at a disadvantage compared to foreign competitors who operate under fewer restrictions.
What Does Trump’s Executive Order Do?
The order temporarily halts new FCPA investigations and enforcement actions for 180 days while the Department of Justice (DOJ) reviews its approach to the law. Specifically, it directs the Attorney General to:
- Pause new FCPA cases, unless an exception is granted.
- Review all ongoing FCPA investigations and determine if they should proceed.
- Develop new guidelines to limit FCPA enforcement to cases that truly threaten US interests.
- Extend the review period by another 180 days if needed.
Once new enforcement policies are in place, any future FCPA case must receive personal approval from the Attorney General—a major shift that could significantly reduce prosecutions.
Why Is This Happening?
The Trump administration argues that overzealous FCPA enforcement hurts US businesses and national security by making it harder for American companies to compete globally. The order suggests that FCPA prosecutions waste federal resources and interfere with presidential authority over foreign affairs.
The White House claims that gaining strategic business advantages—such as securing access to critical minerals, deep-water ports, and key infrastructure—is essential for US economic and national security. According to the administration, current FCPA enforcement makes it more difficult for American businesses to operate in foreign markets and gives an edge to international competitors who are not bound by similar laws.
What Are the Potential Consequences?
- For US businesses: Many companies may feel freer to engage in transactions that previously carried legal risks. Some may see this as an opportunity to expand operations in high-growth markets without fear of prosecution.
- For corruption and ethics: Critics warn that this move weakens anti-corruption efforts and could encourage bribery, damaging America’s reputation abroad. It may also strain relationships with allies that prioritize anti-bribery measures.
- For future FCPA enforcement: While the order does not repeal the FCPA, it significantly limits its impact. Depending on the DOJ’s final review, the law could be permanently weakened or enforced only in extreme cases.
The Bottom Line
Trump’s executive order is a major shift in US anti-corruption policy. While it is framed as a way to protect American business interests, it raises concerns about the erosion of ethical standards in global commerce. The long-term effects will depend on how the DOJ reshapes enforcement and whether future administrations choose to restore the FCPA’s full power.