The Foreign Corrupt Practices Act (FCPA) prohibits U.S. companies and individuals from bribing foreign officials for business advantages. Since 1977, this law has helped the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) fight global corruption. However, recent actions by the Trump administration may change how this law affects you.
Pausing enforcement
On February 10, 2025, President Trump signed an order to stop FCPA enforcement for 180 days. This order tells the Attorney General to examine enforcement rules, saying the law hurts U.S. business competitiveness. Even with this pause, past data shows that enforcement might not change much over time.
Enforcement data
A closer look at DOJ records shows 26 enforcement actions in 2024, less than the ten-year average of 36. However, each case involved more companies and individuals, showing a shift toward handling bigger bribery cases. This change indicates that the government wants depth over volume in its investigations.
New priorities: Targeting criminal organizations
Attorney General Pam Bondi now focuses on foreign corruption linked to transnational criminal organizations and narcotics trafficking. This change might mean less focus on regular bribery cases and more attention on ties to organized crime.
Potential penalties and consequences
Being aware of the potential penalties for FCPA violations can help you understand the risks and prepare accordingly:
- Financial penalties: FCPA violations can lead to hefty fines for people and companies. These fines can hurt your finances.
- Reputational damage: FCPA charges can harm your name and career. You need to deal with these charges quickly to reduce harm.
- Legal consequences: Besides fines, FCPA violations can send you to jail and cause other legal problems.
Knowing these risks helps you and your lawyer make a strong defense plan.
Navigating the DOJ and SEC Investigation Process
Understanding what to expect during an investigation can help you prepare and respond effectively:
- Cooperate with authorities: While you must protect your rights, working with the DOJ and SEC shows you want to help. Your lawyer can guide you through this process.
- Prepare for interviews and depositions: Be ready to explain your business actions and any talks with foreign officials. Your lawyer can help you prepare to tell your story clearly and correctly.
By staying informed and taking early action, you can better handle FCPA charges and protect your business and reputation during these changing times.