On February 10, 2025, President Donald J. Trump signed an Executive Order pausing enforcement actions under the Foreign Corrupt Practices Act (FCPA), citing concerns that excessive enforcement was harming American businesses and national security interests. The order directs the Attorney General to review and revise enforcement policies, with the goal of ensuring that companies are not placed at a competitive disadvantage against foreign competitors who operate under less stringent anti-corruption laws. While this policy shift signals a temporary reprieve from aggressive enforcement, it does not eliminate the obligations imposed by the FCPA, nor does it provide any legally enforceable rights to businesses seeking to avoid compliance.
The Presidential executive order directs Attorney General Bondi to review guidelines and policies governing investigations and enforcement actions under the FCPA and, during that time, to:
- Cease initiation of any new FCPA investigations or enforcement actions, unless the Attorney General determines that an individual exception should be made;
- Review in detail all existing FCPA investigations or enforcement actions and take appropriate action with respect to such matters to restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives; and
- Issue updated guidelines or policies, as appropriate, to adequately promote the President’s Article II authority to conduct foreign affairs and prioritize American interests, American economic competitiveness with respect to other nations, and the efficient use of Federal law enforcement resources.
After that, only prosecutions or enforcement actions that comport with the new guidelines will be approved.
What is the FCPA?
The FCPA was designed to promote ethical business practices, the law seeks to prevent U.S. companies and individuals from securing unfair advantages through illicit payments to foreign officials. Over the years, the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have taken an aggressive stance in enforcing the FCPA, leading to significant penalties for companies and individuals found in violation. The FCPA is structured around two core principles: anti-bribery provisions and accounting requirements. The anti-bribery component makes it unlawful for U.S. individuals, businesses, and certain foreign entities to corruptly offer, promise, or provide anything of value to foreign officials with the intent of influencing business decisions. The prohibition extends beyond direct cash payments and includes gifts, travel, and even charitable contributions if they are intended to secure an improper advantage.
The Presidential directive reflects the criticism of the FCPA that it unfairly prevents US companies from engaging in bribes, gratuities, “grease payments” or other payments which may be common practice in foreign countries, and thereby puts U.S. companies at a competitive disadvantage when compared to local or other companies that are not prohibited from paying foreign bribes or corrupting foreign government officials.
What Companies Should Do Now
Covered businesses should take a cautious approach in responding to the 2025 Executive Order. While some might view the pause in enforcement as an opportunity to loosen compliance efforts, the smarter strategy is to maintain robust anti-corruption programs and stay ahead of potential policy reversals. The following steps will help businesses protect themselves against future liability:
- Keep Anti-Corruption Policies in Place
- Conduct Regular Internal Audits
- Remain Cautious in High-Risk Jurisdictions
- Monitor Potential Changes in Enforcement Policies
- Understand the Statute of Limitations Risk
The Executive Order requires the Attorney General to develop new FCPA Guidelines, and we do not yet know what those guidelines will look like. The Statute of Limitations for FCPA cases remains five years, so a future administration might enforce the law differently than the current administration. While they are likely to be more permissive than the current FCPA requirements, until they are in place, we cannot know what actions the DOJ and FBI will – or will not – consider to constitute a violation of the law.
Conclusion
President Trump’s 2025 Executive Order may change the enforcement landscape for the Foreign Corrupt Practices Act, but it does not eliminate the risks associated with non-compliance. The FCPA remains federal law, and the pause on enforcement does not create a legal shield against future prosecution. In an era of evolving enforcement policies, the best defense remains proactive compliance.
To discuss further, please contact Mark Rasch (MDR@kjk.com) or Brett Krantz (BK@kjk.com), or call our office at 216.696.8700.