In a significant shift in U.S. policy on combating international corruption, President Donald Trump has signed an executive order instructing the Department of Justice (DOJ) to pause both current and pending investigations and prosecutions under the Foreign Corrupt Practices Act (FCPA). This legislation, enacted in 1977, prohibits individuals and corporations from bribing foreign officials to secure business advantages. The White House described the act as increasingly overreaching and argued it penalizes U.S. entities for commonly accepted practices in other countries.
The executive order mandates cessation of FCPA-related proceedings, subject to the Attorney General’s discretion, and a comprehensive review of ongoing actions. Additionally, it directs policy revisions to align with the President’s authority under Article II of the U.S. Constitution regarding foreign affairs. This includes the potential for retroactive measures concerning past investigations.
Transparency International has positioned the FCPA as the United States’ foremost protection against global bribery and an exemplar for international anti-corruption frameworks. The organization highlighted in its 2022 report a notable decline in anti-bribery enforcement by the U.S., with penalties plummeting from $7.13 billion in 2020 to $461 million in 2021. While preliminary data suggest a modest recovery in 2022, the figures remain lower than pre-2020 levels.
Data from the DOJ reveals a decline in FCPA enforcement actions in recent years, with only 24 actions undertaken in 2024 compared to 65 in 2019. This trend raises concerns about the U.S.’s commitment to its obligations under international conventions such as the United Nations Convention Against Corruption (UNCAC). Article 16 of the UNCAC obligates member states, including the U.S., to enact measures against the bribery of foreign officials.
Opposition to the executive order has emerged, including criticism from experts like Richard Nephew, a Senior Research Scholar at Columbia University and former Anti-Corruption Coordinator at the Department of State. Nephew has publicly condemned the decision, arguing that the U.S. should not resort to competitiveness based on corrupt practices.
This recent development has revived discussions on the double standards evident in U.S. anti-corruption policy, as highlighted by scholars in 2024. As the Trump administration’s directive unfolds, its impact on global anti-bribery efforts and the U.S.’s moral standing in the international community remains to be fully understood.
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