Business or Bribery? FCPA Enforcement Paused 

United States: The Federal government of the United States currently stops monitoring the enforcement of the Foreign Corrupt Practices Act (FCPA) which has acted as a prominent anti-bribery law during its almost fifty-year existence. The new executive order requires the Justice Department to stop all investigations concerning American businesses which pay foreign officials to obtain international business prospects, as reported by Reuters. 

Review Ordered for Future Guidelines 

The directive requires Attorney General Pam Bondi to investigate every FCPA matter that has previously arisen and currently stands while developing updated enforcement policies. The government maintains that strict guidelines have created an operational disadvantage for United States businesses relative to their global business competitors. 

The FCPA established in 1977 prohibits any U.S.-based business to pay foreign public officials for securing commercial agreements. Global anti-corruption initiatives count the FCPA as an essential component for their work. Transparency International commended the law for establishing the United States as an international ethics and accountability leader. 

Concerns Over Weakening Anti-Bribery Laws 

Critics warn that suspending FCPA enforcement could undermine decades of progress in fighting corporate corruption. Gary Kalman of Transparency International U.S. voiced concerns that this move weakens the country’s stance on bribery and could pave the way for further deregulation. 

Businesses Push for Reform 

According to the White House, American companies have long faced competitive disadvantages due to strict FCPA enforcement. A government fact sheet claims that the law prevents U.S. firms from engaging in practices that are common in global markets, leading to an “uneven playing field.” 

Major Companies Previously Investigated 

Over the years, the Justice Department has launched numerous investigations under the FCPA, targeting major corporations such as Goldman Sachs, Glencore, and Walmart. In 2024 alone, federal regulators pursued 26 cases and investigated 31 different companies under the law, as reported by Reuters. 

What Happens Next? 

The Justice Department must develop new guidelines which establish proper balances between investigatory efforts against corruption and foreign business growth opportunities for American companies. This review process has the potential to transform corporate compliance systems and worldwide business operations which will last through multiple years.