During the first Trump administration, the Foreign Corrupt Practices Act (FCPA) remained largely unaffected in both scope and enforcement. However, Trump 2.0 has paused FCPA enforcement and signaled a significant shift in priorities.

Last week, Pam Bondi, the newly appointed Attorney General (AG), issued a memorandum titled “Removing Bureaucrtic Impediments to Aggressive Prosecutions.” On February 10th,  the President followed with an executive order "Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security."

The Executive Order

The order states that the FCPA has been “stretched beyond proper bounds and abused in a manner that harms the interests of the United States.” It halts future FCPA enforcement cases and instructs the (AG) to review current cases to restore “proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives."  The AG is instructed to complete the review and issue new FCPA guidance within 180 days. 

The AG’s memo 

According to the memorandum, FCPA enforcement resources will be “reprioritized” for a 90-day period to focus on bribery cases linked to transnational criminal organizations (TCOs) and cartels. Specifically, DOJ prosecutors will prioritize cases where bribery facilitates crimes such as:

  • Human smuggling
  • Narcotics and firearms trafficking
  • Hacking and cybercrime
  • The illegal weapons trade

This focus aligns with the administration’s broader crackdown on fentanyl shipments, drug smuggling, and other cross-border criminal activity.

A particularly notable change is that local U.S. Attorney’s Offices will now have greater authority to bring FCPA cases involving cartels and TCOs. Previously, the DOJ’s Fraud Section had to approve all FCPA cases, but under the new policy, local prosecutors need only provide 24 hours’ notice before pursuing charges in these areas.

What does this mean for companies? 7 takeaways

While some headlines suggest that these changes could reduce the risk of FCPA enforcement, the reality is more nuanced. As any good lawyer would say, it depends. Here’s why businesses should remain cautious:

1. The 90-day and 180 day periods are just the beginning.

It’s not clear what will happen at the end of the 180 and 90-day periods but time will tell if a major shift in both current and future cases is underway

2. Voluntary disclosures and whistleblowers could still drive cases.

Many FCPA cases originate from self-reported violations or whistleblower tips, often leading to enforcement even when the DOJ isn’t actively prioritizing a particular industry or type of misconduct.  The Executive Order is likely to have a chilling effect on disclosures and also on whistleblowers reporting bribery issues but it’s not clear whether all ongoing cases or enforcement will terminate, particularly if they involve entities or individuals perceived as unfriendly to the Administration.

3.  The FCPA is still the law of the land.

The FCPA is still in effect and the statute of limitations is five years.  Acts of bribery taking place now could be subject to enforcement actions in the next Administration.

4. Global enforcement will continue.

The U.S. isn’t the only player in the anti-corruption space. Many countries have enacted their own FCPA-style laws, and joint prosecutions between the DOJ and foreign regulators have become common. The executive order and new priorities won’t directly affect prosecutions in other jurisdictions but could curtail DOJ participation.

5. The SEC’s separate jurisdiction.

Even if the DOJ scales back, the Securities and Exchange Commission (SEC) retains independent authority to enforce FCPA violations related to financial reporting which hasn’t been curtailed.  Even seemingly minor accounting misclassifications — such as booking a charitable donation at the request of a government official — could trigger SEC scrutiny. For example, see the Schering-Plough case.

6. Past prioritization shifts haven’t reduced corporate prosecutions.

Previous administrations have terminated active bribery cases and refocused FCPA enforcement on specific issues — such as China, kleptocracy, and human smuggling — but this hasn’t led to a decline in corporate FCPA prosecutions. New administrations and Attorneys General commonly prioritize and de-prioritize enforcing certain laws or types of laws..History suggests that businesses shouldn’t assume this reprioritization means they’re off the hook.

7. Bribery is unethical.

Bribery violates the Codes of Conduct and values of most (if not all) U.S. companies. And corporate governance and regulatory requirements still exist. that require U.S. companies, especially regulated entities, to self-report certain conduct under some circumstances. U.S. companies still need effective compliance programs designed to prevent and detect certain events and follow applicable corporate reporting requirements when issues occur or are uncovered.

The bottom line: uncertainty reigns

For now, the only certainty is uncertainty. While the DOJ’s short-term focus may be shifting, companies should not interpret this as a green light to relax their compliance efforts. If history is any guide, anti-bribery enforcement isn’t going away anytime soon.