The enforcement of the Foreign Corrupt Practices Act (FCPA), a critical piece of legislation aimed at preventing bribery and corruption by U.S. companies abroad, has been suspended by President Donald Trump. This decision comes as part of a broader directive to reassess the law, which has been a cornerstone of U.S. anti-corruption efforts for nearly 50 years. The move has triggered a wave of reactions and concerns over its implications for global business practices.
The FCPA prohibits U.S. firms from using bribery as a means to win or retain business in other countries, and has been actively enforced by the U.S. Justice Department and the Securities Exchange Commission. In 2024 alone, these agencies filed 26 enforcement actions under the law, with at least 31 companies under investigation by the year's end. The law has previously ensnared high-profile companies such as Goldman Sachs and Glencore. In 2020, Goldman Sachs agreed to pay nearly $3 billion to resolve its involvement in the 1MDB corruption scandal, where its Malaysian subsidiary admitted to paying over $1 billion in bribes.
President Trump, who has criticized the FCPA as a "horrible law," believes its enforcement could hinder routine business practices in other nations. He has directed U.S. justice authorities to review current and past enforcement actions and develop new guidelines for the law's application. The White House supports this move, stating that aggressive enforcement diverts resources from "preserving American freedoms." They argue that U.S. companies suffer due to FCPA over-enforcement, as it prevents them from engaging in business practices common among international competitors.
"US companies are harmed by FCPA over-enforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field." – White House statement
Opposition voices have expressed concerns that halting FCPA enforcement could significantly undermine global anti-corruption efforts. Transparency International warned that this action "diminishes – and could pave the way for completely eliminating – the crown jewel in the US's fight against global corruption."
"diminishes – and could pave the way for completely eliminating – the crown jewel in the US's fight against global corruption" – Transparency International
Past enforcement of the FCPA has led to substantial penalties for major corporations. For instance, in 2022, Swiss-based Glencore agreed to pay $180 million to settle corruption claims with the Democratic Republic of Congo. Meanwhile, President Trump has emphasized that reducing FCPA enforcement is beneficial for American businesses.
"It's going to mean a lot more business for America." – Donald Trump