Trump issues executive order to curb stretching the FCPA beyond its proper bounds

On February 10, 2025, President Trump issued an executive order directing the Attorney General (AG) to pause investigations and enforcement actions brought under the Foreign Corrupt Practices Act (FCPA) for 180 days, subject to exceptions granted by the AG.

During that time, the executive order requires the AG to review the guidelines and policies governing FCPA investigations and enforcement actions and to prioritize American economic competitiveness through the efficient use of law enforcement resources. The order further directs the AG to “review in detail” all existing FCPA investigations and enforcement actions “to restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives.” If necessary, the AG may extend the review period for an additional 180 days.

The FCPA was enacted to prohibit bribing foreign government officials in order to win business overseas. Since enactment, it has been the primary foreign anti-corruption law in the United States. Prosecutors have interpreted the FCPA expansively and have used that expansive interpretation to wrest sometimes staggering fines from targeted companies. Going forward, the AG must authorize all new FCPA investigations and enforcement actions.

The president issued the executive order due to concern that the FCPA “has been systematically, and to a steadily increasing degree, stretched beyond proper bounds and abused in a manner that harms the interests of the United States.” The executive order is designed to address and rectify those concerns.

After issuing the revised guidelines, the AG must consider “whether additional actions, including remedial measures with respect to inappropriate past FCPA investigations and enforcement actions, are warranted.” The executive order does not elaborate on what constitutes an inappropriate past investigation or what types of remedial measures are contemplated.

Companies should not overread the implications of this executive order. The FCPA is not dead, and companies do not have free rein to bribe foreign government officials. The AG can authorize new investigations during the review period. Nor is there a safe harbor for conduct committed prior to the issuance of the new guidelines. For public companies, the SEC – which is outside the scope of the executive order – also has civil enforcement authority over the FCPA, and the SEC has not stated how or whether it will change its approach to enforcing the FCPA.

Moreover, the circumstances surrounding the bribery of foreign government officials can often include other separate criminal violations that are not impacted by the executive order. For example, prosecutors remain empowered to charge US companies with wire fraud, money laundering offenses or violations of the Travel Act.

Importantly, many other countries in which US businesses operate now also have their own anti-corruption laws, including some with expansive jurisdictional hooks, such as the UK Bribery Act.

While the AG may issue revised FCPA guidelines that curb creative efforts to stretch application of the FCPA beyond its intended meaning, that does not mean that bribing foreign government officials to obtain business will somehow now be without risk of prosecution or other government enforcement action.