President Trump Presses Pause on FCPA Enforcement — But Bribery Is Still Illegal and Compliance Programs Still Matter

On Monday, February 10, 2025, President Trump hit the “pause” button on almost all enforcement activity involving the Foreign Corrupt Practices Act (FCPA).

The Executive Order

President Trump issued an Executive Order, “Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security,” that gives the Attorney General a 180-day period to:

• “[R]eview 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”
• “[I]ssue 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”

While the review is going on, the U.S. Department of Justice (DOJ) must not initiate any new FCPA investigations or enforcement actions, unless the Attorney General determines that an individual exception is warranted. The Executive Order also permits the Attorney General to extend the review period for an additional 180 days.

Focusing on the competitiveness of American companies in the global economy, the Executive Order intimates that, going forward, DOJ may elect not to enforce the FCPA against American citizens and companies in situations where such enforcement could put them at a competitive disadvantage. The Executive Order reflects the president’s perception that “overexpansive 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.” The Executive Order thus seeks to eliminate “excessive barriers to American commerce abroad.”

Analysis

The FCPA applies not just to American companies but also to foreign companies that issue securities in the United States, as well as companies that take action in furtherance of a corrupt payment while in U.S. territory. Foreign individuals, too, can be — and frequently have been — prosecuted under the FCPA. It remains to be seen whether DOJ’s approach to enforcing the FCPA going forward will differentiate between domestic and international persons — and what is meant by an “American” company (for example, would a U.S. subsidiary of a foreign company be considered an American company?).

After “the revised guidelines or policies are issued … the Attorney General shall determine whether additional actions, including remedial measures with respect to inappropriate past FCPA investigations and enforcement actions, are warranted and shall take any such appropriate actions or, if Presidential action is required, recommend such actions to the President.” It is unclear exactly what “remedial action” President Trump may have in mind for “past FCPA investigations and enforcement” that the Attorney General deems “inappropriate.” Might DOJ renegotiate corporate settlement agreements? Might individuals convicted of FCPA violations be pardoned or have their sentences commuted by the president? Might the president try to get Congress to repeal the FCPA? We will be watching closely.

President Trump’s new Executive Order echoes his criticism of the FCPA from back in 2012, before he held elected office, when he called the anti-bribery statute a “horrible law” that “should be changed.” But during the first Trump administration, DOJ reached some of the largest-ever FCPA settlements, with both U.S. and foreign companies, and prosecuted dozens of individuals for FCPA violations relating to bribery schemes all over the world. Tales of the FCPA’s demise were greatly exaggerated.

Is this time different? Perhaps. The second Trump administration has been moving with unprecedented speed to change law enforcement priorities and reshape the executive branch through Executive Orders and other measures. In light of the February 10 Executive Order, we naturally anticipate a near-term slowdown in FCPA enforcement. And we would not be surprised to see further disruption to what had been the status quo.

We already have a memorandum issued by Attorney General Pamela Bondi on February 5, 2025, her first day in office, directing DOJ employees to prioritize FCPA cases involving cartels and transnational criminal organizations.

Key Takeaways

• A ”pause” does not mean abandonment of enforcement.
• Bribery is still illegal. The FCPA remains on the books; Congress has not repealed it. And many other state, federal, and foreign laws still prohibit bribery.
• The statute of limitations outruns the Trump administration. For a criminal violation of the FCPA’s anti-bribery provisions, the statute of limitation is five years, and for a criminal violation of the FCPA’s accounting provision, it is six years. So violations that occurred recently, that remain ongoing, or that take place in the next four years could all be fair game for the next administration (whether Republican or Democrat).
• The U.S. Securities and Exchange Commission (SEC) retains civil authority to enforce the FCPA anti-bribery and accounting provisions against companies with publicly traded securities in the United States. Thus far, the SEC has not announced any changes to its FCPA enforcement program (though we will be paying attention to what President Trump’s nominee for SEC Chair, Paul Atkins, has to say about the FCPA).
• Bribery can result in civil litigation by private parties, including business partners, shareholders, competitors, and others. Suits might allege breach of contract (e.g., for breach of a representation and warranty), torts (e.g., for fraud, tortious interference with business relations, breach of fiduciary duty), civil RICO violations (e.g., for a pattern of bribery), and securities law violations (e.g., for inadequate disclosures). Bribery can implicate antitrust and competition laws as well.
• Other countries around the world have beefed up their enforcement of anti-corruption laws, many at the urging of the United States. So even if U.S. authorities do not assert jurisdiction over those implicated in a particular international bribery scheme, other authorities might take their own shot.

Finally, compliance programs still matter.

Many companies have built anti-corruption compliance not just to avoid criminal prosecution in the United States but to comply with a host of laws and regulations that may apply across jurisdictions. Anti-corruption compliance programs often serve other goals as well, beyond mere compliance with law — establishing ethical standards for doing business, fostering confidence in management, setting clear expectations for employees and business partners, ensuring transparency within an organization, preventing waste of corporate assets, encouraging fair competition, and deterring demands for bribes.

Once the Attorney General provides new guidance on FCPA enforcement, some organizations may ultimately find it appropriate to adjust their compliance programs. But for now, we recommend that companies wait and see what will happen, and meanwhile continue to focus on compliance.

© Arnold & Porter Kaye Scholer LLP 2025 All Rights Reserved. This Blog post is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.