California Attorney General Reminds Businesses That Bribery Is Still Illegal, No Matter What’s Happening in Washington

Key Takeaways

• Bribery is still illegal: Even though the DOJ has paused enforcement, both the FCPA and California law remain in full effect.
• California has its own enforcement power: The UCL allows the state to take action against businesses for bribery, regardless of what happens on the federal level.
• No relaxation in compliance: Companies must continue adhering to strong anti-corruption measures to avoid legal risks down the road.
• Internal controls are key: Businesses should maintain accurate financial records and strong internal controls to keep things above board.

Deep Dive

California and U.S. businesses should take note, bribing foreign officials is still a big no-no, even if recent headlines about the FCPA enforcement pause have you wondering otherwise.

California Attorney General Rob Bonta issued a timely reminder, especially after recent news about the pause in federal enforcement of the Foreign Corrupt Practices Act (FCPA). In case there was any confusion, he made it clear that bribery is still against the law under both California’s Unfair Competition Law (UCL) and the FCPA itself.

“Illegal activity is still illegal,” Bonta said. “Paying bribes to foreign officials is unethical, it’s bad for business, and it damages the very trust that keeps the market running smoothly.”

Even though the Trump administration’s recent executive order has temporarily paused federal enforcement of the FCPA, businesses in California cannot afford to think the rules have changed. Bonta’s message? No one gets a free pass here.

The FCPA: Still In Play

Now, let’s take a step back. The FCPA, which has been around since 1977, makes it illegal for U.S. companies to offer or pay bribes to foreign-government officials for a business advantage. It’s not just a suggestion, it’s a law that applies to every U.S. business, no matter where they operate.

And though the federal government has hit pause on enforcement, that doesn’t mean the law goes away. The FCPA is still very much in effect, and businesses are still bound by its rules, especially in California. That’s where the Unfair Competition Law (UCL) steps in, California’s way of holding businesses accountable for illegal practices like bribery.

Here’s the deal, even if the DOJ isn’t cracking down right now, California still has your back (or rather, holds you accountable). The UCL allows the Attorney General to take action against businesses that engage in unlawful business practices. If your company decides to bend the rules, you could face civil penalties, restitution, and even lose profits you gained through shady dealings.

California’s commitment to fair business practices doesn’t change just because the feds decide to review their approach. Bribery? It's still illegal. You don’t get a break here.

What This Means for You

If you’re a business owner in California, this is a reminder to stay on track. The FCPA hasn’t gone anywhere—it’s still the law, and bribing foreign officials is still a major no-no. This is not the time to get complacent, even if the pause in federal enforcement might make things seem a little less clear.

Bonta is urging businesses to keep their anti-corruption efforts strong and their internal controls intact. The pause may have created some uncertainty, but the law is still there. It’s just waiting for the next round of enforcement to kick back in, and trust me, the consequences will be real when that happens.

At the end of the day, the best advice is simple: don’t take shortcuts. The rules haven’t changed. Bribing foreign officials is just bad business, and ignoring the law could lead to major legal headaches. Stay proactive, stay compliant, and stay ethical.

So, whether you’re in California or beyond, keep your business practices clean. If you’re ever unsure, it’s always a good idea to double-check with legal professionals to make sure you’re on the right track.

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