On February 10, 2025, President Donald Trump signed an Executive Order (EO) dramatically altering the enforcement landscape of the Foreign Corrupt Practices Act (FCPA). The EO orders an immediate pause on new FCPA investigations and enforcement actions while the Department of Justice (DOJ) reviews its enforcement guidelines. Ongoing cases will also be reassessed to ensure they align with the administration’s new priorities.
Key changes include:
This marks a significant departure from previous administrations, which expanded FCPA enforcement, resulting in billions of dollars in fines and penalties.
In 2024:
The Trump administration argues that overzealous enforcement has weakened U.S. businesses by preventing them from engaging in practices common among foreign competitors.
The FCPA, enacted in 1977, was designed to prevent U.S. companies from engaging in bribery of foreign officials to gain a business advantage. It has two main provisions:
It forbids U.S. companies, issuers or persons anywhere in the world, or foreign persons while within the U.S., from corruptly offering or paying anything of value, directly or indirectly, to a foreign government official, party or candidate, in order to influence an official act or secure improper advantage to obtain or retain business.
Willful violations of the anti-bribery provisions were punishable by criminal penalties of up to $2 million for companies and $250,000 plus five years imprisonment for individuals, including directors, corporate officers, employees, agents or stockholders. Civil penalties of up to $26,262 could also be applied for companies or individuals found liable, and a disgorgement penalty may be twice the amount gained.
The anti-bribery provisions contain an exception for "grease" payments defined as small payments made to facilitate or expedite "routine governmental actions" such as obtaining licenses and permits to do business in a country, providing police protection, processing visas or government work orders, scheduling inspections, and the like.
There are only two affirmative defenses:
These require companies to maintain accurate records and internal controls to prevent and detect corruption. They are enforced by the Securities and Exchange Commission (SEC):
Companies violating the FCPA’s accounting provisions face civil penalties of $118,225 to $1,182,251 per violation. Individuals can be fined $11,823 to $236,451 per violation.
President Trump’s EO frames excessive FCPA enforcement as an obstacle to U.S. global competitiveness. According to the White House fact sheet, the administration believes:
While companies operating internationally can expect a slowdown in FCPA enforcement as the DOJ reevaluates its approach, they should not interpret it as a reason to deprioritize compliance, as changes to the law itself have not been made—only the enforcement strategy is shifting. Anticorruption regulations in other major economies, including the UK Bribery Act and EU laws, might still apply to your business.
Beyond regulatory concerns, bribery remains a financial and operational risk. It can lead to financial mismanagement, reputational damage and legal exposure under other statutes like wire fraud and money laundering laws. The FCPA’s five-year statute of limitations means enforcement could return in full force in a future administration. Businesses that weaken their compliance programs now may find themselves unprepared later.
The first step in navigating fluctuating regulations is having a clear understanding of your compliance responsibilities and establishing an export compliance program that everyone in your company follows. A strong program not only ensures adherence to existing laws but also prepares your business for potential shifts in enforcement priorities.
To help you build a solid compliance strategy, download our free guides:
And for a deeper understanding of the FCPA and what it entails, watch our on-demand webinar: Foreign Corrupt Practices Act: What You Need to Know.
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This post, originally by Mary K. McCormick, was first published in February 2008. It has been updated to include current information, links and formatting.