FCPA Enforcement Paused: What to Expect in Practice
Examining the Executive Order Pausing the FCPA and Its Expected Impact
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March 11, 2025
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What Happened
On February 10, 2025, President Trump issued an Executive Order pausing enforcement of the FCPA for 180 days.1
The Executive Order makes it clear that the purpose behind it is “to Further American Economic and National Security”.2
For a period of 180 days following the date of this order, the Attorney General shall:3
- review guidelines and policies governing investigations and enforcement actions under the FCPA;
- cease initiation of any new FCPA investigations or enforcement actions, unless the Attorney General determines that an individual exception should be made;
- review in detail all existing FCPA investigations or 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, as appropriate, to adequately promote the President’s Article II authority to conduct foreign affairs and prioritize American interests, American economic competitiveness with respect to other nations, and the efficient use of Federal law enforcement resources.
The Attorney General may extend such review period for an additional 180 days.4
Also according to the Executive order, FCPA investigations and enforcement actions initiated or continued after the revised guidelines or policies are issued shall be governed by such guidelines or policies; and must be specifically authorized by the Attorney General.5
What To Expect in Practice
From a corporate perspective, relaxing anti-corruption compliance and integrity standards due to this Executive Order could introduce several risks, including:
- Increased exposure to other misconduct: Failing to prevent corrupt behaviour at a company is likely to increase the risk of other wrongdoing such as fraud, money laundering, or tax evasion, since corrupt conduct tends to contribute to a “slippery slope” corporate culture. This is why a strong compliance and integrity corporate framework is essential for addressing all relevant forms of wrongdoing.
- Continued anti-corruption enforcement risks in the US and other countries despite FCPA temporary uncertainty: The FCPA has historically been the cornerstone of global anti-corruption enforcement, supported by a strong rule-of-law culture, enforcement resources, and a legal system including tools such as rewards for whistleblowers and settlements for wrongdoers. While FCPA enforcement may be temporarily “paused,” the law itself remains in effect. Moreover, many other countries have enacted their own anti-bribery regulations.6 Therefore, companies could still face prosecution for violations in the U.S. after the pause is lifted (within the applicable statute of limitations) or in other jurisdictions. Additionally, listed companies may be required to disclose such breaches under securities regulations.
- SEC, contracts and bidding processes: The Executive Order applies to the Department of Justice, but it remains to be seen how the Securities and Exchange Commission (“SEC”) will behave, given its significant role in enforcing the FCPA. Furthermore, contracts and bidding requirements mandating FCPA compliance remain legally binding.
- Individual liability persists: Any corporate violations of the FCPA are committed by individuals, who remain personally exposed to legal liability under both U.S. and foreign laws. Beyond legal consequences, individuals may also face significant reputational harm that could impact their careers.
Conclusion
This is the beginning of a new chapter in over 4 decades of FCPA enforcement history. The statute, in force since 1977, remains valid.
Companies and individuals subject to the FCPA and who engage in cross-border business with exposure to corruption risks will benefit from closely monitoring developments in the coming months such as the publication of new FCPA Guidelines by the Attorney General and any further political or judicial decisions that may influence the future trajectory of FCPA enforcement.
For companies, clearly communicating to their teams how this Executive Order will—or will not—impact their approach to FCPA and anti-corruption compliance can help prevent costly misunderstandings.
1: Executive Order published by the White House on February 10, 2025, available at https://www.whitehouse.gov/presidential-actions/2025/02/pausing-foreign-corrupt-practices-act-enforcement-to-further-american-economic-and-national-security/
2: Id.
3: Id.
4: Id.
5: Id.
6: Some relevant examples include the UK Bribery Act, the Brazilian Clean Companies Act, and the Sapin II law in France.
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Published
March 11, 2025
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