What Happens When the Fight Against Corruption Hits Pause? The White House Halts FCPA Enforcement

Key Takeaways

• Executive Order Impact: President Trump’s February 2025 executive order pauses FCPA enforcement for 180 days, giving the DOJ time to review and adjust its approach to tackling international corruption.
• Business Implications: While the core of the FCPA remains unchanged, the temporary pause could benefit U.S. companies by reducing immediate enforcement risks, though it leaves uncertainty around pending cases.
• Foreign Competition: Foreign companies, especially those in countries with weaker anti-corruption laws, could benefit from the pause as U.S. competitors receive temporary relief. However, the DOJ may still target foreign firms in key sectors.
• Compliance and Risk: Businesses should not let the pause lull them into complacency. The FCPA remains in effect, and companies must maintain robust anti-corruption measures as the DOJ revises its enforcement guidelines.
• SEC's Role: While the DOJ pauses its enforcement, the SEC continues to handle civil FCPA cases for U.S. public companies, and its enforcement approach could shift depending on new leadership.

Deep Dive

When President Donald Trump signed an executive order on February 10, 2025, pausing the enforcement of the Foreign Corrupt Practices Act (FCPA), he set off a chain reaction that has reverberated through boardrooms and government offices alike. The executive order gives the Department of Justice (DOJ) 180 days to review and revise its approach to FCPA enforcement, a move that could dramatically reshape how the U.S. tackles international corruption.

But let’s slow down for a second. What does this pause really mean for businesses, and how will it affect the broader landscape of anti-corruption efforts? Let's break it down.

What’s the Executive Order All About?

Since its passage in 1977, the FCPA has been a cornerstone of the U.S. government's efforts to combat bribery in international business. The law makes it illegal for U.S. companies to offer bribes to foreign officials in exchange for business advantages. For years, it’s been a powerful tool in holding companies accountable for corrupt practices abroad.

But now, President Trump’s executive order argues that FCPA enforcement has, at times, created what the administration sees as "excessive barriers" to U.S. businesses competing in global markets. The idea is that if U.S. companies are too tightly constrained by the FCPA’s broad reach, they risk falling behind in securing strategic resources—such as critical minerals and infrastructure—needed to strengthen national security.

The order directs Attorney General Pam Bondi to halt any new FCPA investigations or enforcement actions for 180 days. During this period, Bondi’s office will review the law’s application, with the aim of creating updated guidelines that better align with the administration’s priorities—namely, promoting American economic competitiveness, advancing foreign policy, and ensuring efficient use of federal law enforcement resources. In short, the pause is about recalibrating the focus of the FCPA to better serve American interests.

Who’s Really Winning Here?

If you’re a business executive, the first question you’re probably asking is, “How does this affect me?” The truth is, this pause doesn’t really change the core of the FCPA—it’s still illegal to bribe foreign officials. What’s different is the approach the DOJ will take moving forward. For now, no new FCPA cases will be pursued unless given the green light by Attorney General Bondi. And existing cases? Those will also be scrutinized to determine whether they align with the updated guidelines.

So, who stands to benefit from this shift? The biggest winners here could be foreign companies. For years, the U.S. government has used the FCPA to target multinational companies engaged in corruption abroad, with some of the biggest cases involving foreign corporations like Airbus and Siemens. Now, with U.S. companies receiving a temporary reprieve, foreign competitors—especially those in countries with weaker anti-corruption laws—may feel less constrained in their international dealings.

However, some experts believe the DOJ will still target foreign firms, particularly those in sectors deemed crucial to national security. This could create a situation where U.S. companies get a break, but foreign companies remain in the DOJ’s sights. It’s a bit like a geopolitical game of chess, with the U.S. potentially using the FCPA as a tool to retaliate against foreign nations that pose economic or political threats.

For U.S. companies, the pause could be a double-edged sword. On one hand, it might give them breathing room in industries where bribery is more common, particularly in regions with corrupt business practices. On the other hand, it could create uncertainty around how the law will be applied once the review period ends. What happens to companies that were in the midst of FCPA investigations before the pause? That remains to be seen.

A Changing Risk Landscape

Here’s where it gets tricky. While the FCPA pause is in place, nothing about the law itself has changed. The statute remains in effect, meaning companies must still continue to adhere to anti-bribery and accounting provisions in the FCPA. As the DOJ retools its approach, businesses should not relax their anti-corruption measures. The pause might create a temporary gap in enforcement, but that doesn’t mean the risk of an FCPA violation has disappeared.

For businesses already under investigation or those with ongoing FCPA matters, the pause is a bit of a gray area. As noted, the review period may extend, and it's unclear how the pause will affect pending cases. This raises questions around how the administration will balance its priorities between cracking down on corruption and ensuring U.S. companies aren’t unfairly penalized in foreign markets. The uncertainty here calls for companies to keep their compliance programs robust and ready for any potential shifts in enforcement priorities.

Also, let’s not forget about the SEC. While the DOJ is hitting pause, the SEC is still in charge of civil FCPA enforcement for publicly traded U.S. companies. While the SEC has not yet signaled any major changes to its enforcement approach, new leadership could bring a different perspective on how aggressively the SEC pursues corruption cases.

What About Global Anti-Corruption Efforts?

The pause on FCPA enforcement raises an interesting question over what will happen to global anti-corruption efforts in the absence of strong U.S. enforcement? The FCPA might be temporarily sidelined, but other countries still have their own anti-corruption laws—like the U.K. Bribery Act and France’s Sapin II Law—that businesses must comply with. These laws are actively enforced, and violating them can lead to hefty penalties, regardless of what the U.S. decides to do.

Moreover, many of the actions that could trigger FCPA violations could also violate other U.S. laws, such as wire fraud or money laundering. The pause doesn’t change this. So, while the focus of FCPA enforcement may shift, businesses should be aware that corruption remains a critical issue, and they must continue to monitor their operations closely for risks.

As the DOJ reviews the FCPA’s enforcement mechanisms over the next 180 days, businesses should still stay vigilant. Changes are coming, but it’s still unclear what they will look like. Once the new guidelines are in place, companies will have a clearer idea of how to adapt their compliance strategies. Until then, businesses should continue to operate as if the FCPA is being enforced at full strength—because it might be once the review period is over.

This moment of pause presents an opportunity for businesses to reflect on their compliance programs, adjust where necessary, and prepare for the future. Whether this leads to a more balanced approach to anti-corruption enforcement or just a temporary shift in priorities, it is clear that risk management and ethical business practices are more important than ever.

The big question remains over whether this pause will actually lead to a more balanced approach to FCPA enforcement, one that enables U.S. companies to better compete globally while still holding corrupt actors accountable? Only time will tell. But in the meantime, companies should stay proactive, stay compliant, and, most importantly, stay ethical.

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