What Does the Temporary Suspension of FCPA Enforcement Mean for Businesses with International Operations?

On February 10, 2025, President Donald Trump issued an executive order pausing Foreign Corrupt Practices Act (FCPA) enforcement to further American economic and national security. The executive order places a temporary halt on Department of Justice (DOJ) investigations or enforcement actions related to all new FCPA cases for a period of 180 days and orders a review by the attorney general of ongoing FCPA investigations.

What Is the FCPA?

The FCPA is a United States law which was first enacted in 1977 that prohibits bribery of foreign officials to obtain or retain business. Enforcement of this law is carried out by the DOJ and the Securities and Exchange Commission (SEC). These agencies investigate and prosecute violations of the FCPA, which includes bribery of foreign officials and accounting provisions related to maintaining accurate books and records. The FCPA has long been regarded as one of the most effective anti-corruption laws worldwide.

What Are the Key Points of the Executive Order?

This executive order seeks to balance FCPA enforcement with promoting U.S. economic and national security interests. It outlines a new policy for enforcing the Foreign Corrupt Practices Act. Key points include:

Purpose and policy:

• The executive order emphasizes that the FCPA has progressively been extended in its application. The current enforcement of the FCPA is viewed by the president as obstructing U.S. foreign policy goals and economic competitiveness.

Policy of enforcement discretion:

• The attorney general will review the guidelines and policies for FCPA investigations and enforcement actions for 180 days after the order date.
• During this review, new FCPA investigations or actions will only start with approval from the attorney general.
• Current FCPA investigations will be reviewed to ensure appropriate enforcement limits and maintain presidential foreign policy prerogatives.
• Updated guidelines or policies will be issued to promote the president’s authority to conduct foreign affairs and prioritize American interests.

Review period extension:

• The attorney general may extend the review period by 180 days if deemed appropriate.

Post-review actions:

• FCPA investigations and enforcement actions that commence or proceed following the issuance of the revised guidelines will be regulated by the new guidelines and require explicit authorization from the attorney general.
• The attorney general will assess whether further actions, including remedies for previous investigations, are necessary and take appropriate steps or recommend actions to the president.

Severability and general provisions:

• If any provision of the order is found to be invalid, the rest of the order will remain in effect.
• The order does not restrict any authority given by law to an executive department or agency.
• The order is to be implemented consistent with applicable law.
• The order does not create any enforceable right or benefit against the United States or its entities.

What Are the Implications for Businesses and Corporations With an International Presence?

The FCPA is still a law, and its violations are federal crimes. The statute of limitations for the FCPA is five years, with possible extensions.

The executive order follows a memorandum issued by U.S. Attorney General Pamela Bondi on February 5, 2025. The memorandum stated that the DOJ Criminal Division’s Foreign Corrupt Practices Act Unit shall prioritize investigations related to foreign bribery that facilitates the operations of transnational criminal organizations and will shift focus away from investigations and cases that do not involve such a connection. The recent executive order to pause FCPA enforcement, along with the Bondi memorandum, indicates a change in the Department of Justice’s approach to corporate enforcement activities related to FCPA investigations.

However, U.S. companies doing business internationally still have to comply with the FCPA and other international anti-bribery and anti-corruption laws, such as the UK Bribery Act and the Canadian Corruption of Foreign Public Officials Act, among others.

It’s important for U.S. companies to continue to maintain strong compliance programs, internal controls and accurate books and records, as the SEC shows no signs of shifting focus away from the enforcement of the FCPA’s accounting provisions. Contact us to further discuss this executive order and its implications for your business.

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