Trump loosens enforcement of US law banning bribery of foreign officials
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US President Donald Trump’s directive calls for “revised, reasonable enforcement guidelines” that will not hamper US firms competing abroad.
PHOTO: REUTERS
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WASHINGTON – US President Donald Trump on Feb 10 signed an executive order directing the US Justice Department to pause prosecutions of Americans accused of bribing foreign government officials while trying to win business in their countries.
Mr Trump’s order pauses enforcement of the nearly half-century-old Foreign Corrupt Practices Act (FCPA), directs Attorney-General Pam Bondi to review current and past actions related to the law and prepare new guidelines for enforcement.
The law, enacted in 1977, prohibits companies that operate in the US from bribing foreign officials. Over time, it has become a guiding force for how American businesses operate overseas.
“It’s going to mean a lot more business for America,” Mr Trump told reporters while signing the order in the Oval Office on Feb 10.
Mr Trump wanted to strike down FCPA during his first term in office and has previously called it a “horrible law” and said “the world is laughing at us” for enforcing it.
Anti-corruption watchdog Transparency International said FCPA made the US a leader in addressing global corruption.
Mr Trump’s executive order “diminishes – and could pave the way for completely eliminating – the crown jewel in the United States’ fight against global corruption,” Mr Gary Kalman, executive director of Transparency International US said in a statement.
A White House fact sheet said the law makes American companies less competitive and creates an uneven playing field.
Mr Trump’s directive calls for “revised, reasonable enforcement guidelines” from the US Justice Department that will not hamper American firms competing abroad, the fact sheet said.
Over the years, a wide range of multinational firms have come under US Justice Department scrutiny over the law, including Goldman Sachs, Glencore and Walmart.
In 2024, the US Justice Department and the US Securities Exchange Commission filed 26 FCPA-related enforcement actions, and at least 31 companies were under investigation by year end, the White House fact sheet said. REUTERS
