As a follow-up to our previous article, "To Tariff, or Not to Tariff?", President Trump issued an Executive Order on February 10, 2025, directing the Attorney General to review the current guidelines and enforcement policies related to the Foreign Corrupt Practices Act (FCPA). The Executive Order established a 180-day review period, during which the Attorney General was tasked with the following:
- Cease initiation of any new FCPA investigations or enforcement actions, unless the Attorney General determines that a specific exception should be made;
- Review all pending FCPA investigations and enforcement actions and take appropriate action with respect to such matters to “restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives;” and
- Issue updated guidelines or policies to promote the President’s authority to conduct foreign affairs and prioritize American interests, competitiveness, and the efficient use of federal law enforcement resources.
The Executive Order focused on the FCPA actively harming “American economic competitiveness and therefore, national security.” In 1977, the U.S. government enacted the FCPA to restore the harm created by domestic and foreign bribes by large multinationals discovered during the Watergate investigation. Arguably, these bribes and kickbacks only served to support and encourage foreign political forces which were antagonistic to US government interests.
While the Executive Order provides very little guidance on the focus of the FCPA following this review, it appears Attorney General Pamela Biondi’s memorandum to the DOJ focuses on foreign bribes to transnational criminal organizations and cartels while shifting away from cases not involving these entities.
The government dismissed one action as a result of the Order but continues to pursue other, pending actions. Similarly, some investigations are proceeding while others have been closed. Currently, there’s no explanation of why actions are progressing while others are not. Since the confirmation of the new SEC Chair, it remains to be seen whether the SEC will follow in the DOJ’s footsteps on pending FCPA actions and investigations.
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