Trump loosens enforcement of US law banning bribery of foreign officials
US President Donald Trump on Monday signed an executive order directing the Justice Department to pause prosecutions of Americans accused of bribing foreign government officials while trying to win or retain business in their countries.
Trump’s order pauses enforcement of the nearly half-century-old Foreign Corrupt Practices Act (FCPA) and directs Attorney General Pam Bondi to review current and past actions related to the law and prepare new guidelines for enforcement.
The law, enacted in 1977, prohibits companies that operate in the United States from bribing foreign officials. Over time, it has become a guiding force for how American businesses operate overseas.
“It’s going to mean a lot more business for America,” Trump told reporters while signing the order in the Oval Office on Monday.
Trump wanted to strike down FCPA during his first term in office. He has called it a “horrible law” and said “the world is laughing at us” for enforcing it.
Anti-corruption watchdog Transparency International said FCPA made the United States a leader in addressing global corruption.
Trump’s executive order “diminishes – and could pave the way for completely eliminating – the crown jewel in the US’s fight against global corruption,” Gary Kalman, executive director of Transparency International US said in a statement.
A White House factsheet said the law makes American companies less competitive.
“U.S. companies are harmed by FCPA over-enforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field,” the fact sheet said.
Trump’s directive calls for “revised, reasonable enforcement guidelines” from the Justice Department that will not hamper American firms competing abroad, the factsheet added.
Over the years, a wide range of multinational firms have come under Justice Department scrutiny over the law, including Goldman Sachs, Glencore and Walmart.
In 2024, the Justice Department and the Securities Exchange Commission filed 26 FCPA-related enforcement actions, and at least 31 companies were under investigation by year end, the White House factsheet said.
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