Trump Orders Halt on FCPA Enforcement, Citing Need for US Business Competitiveness

President Donald Trump has signed an executive order halting the enforcement of the Foreign Corrupt Practices Act. The order, meant to enhance US business competitiveness, directs the Attorney General to review past decisions related to the law, which Trump described as harmful to American companies internationally.

In a significant move, President Donald Trump on Monday signed an executive order directing the Justice Department to pause prosecutions under the Foreign Corrupt Practices Act (FCPA), as reported by Reuters. This action marks a temporary halt to the implementation of the 1977 law, which prohibits US firms from bribing foreign officials. Attorney General Pam Bondi has been tasked with reviewing both current and past decisions related to FCPA enforcement and issuing new guidelines, according to the report.

Implemented during Jimmy Carter's presidency, the FCPA has long served as a benchmark for corporate conduct overseas. Trump has criticized the law, calling it 'horrible,' and expressing that its enforcement has deterred international business dealings by American companies. The President emphasized that revoking the act would bolster US business globally, arguing that the measure impedes economic competitiveness.

Despite Trump's intentions, anti-corruption groups like Transparency International have highlighted the United States' leadership role in global corruption control due to FCPA enforcement. However, the White House defended the executive order, asserting that excessive FCPA regulations had created an uneven playing field, affecting American business competitiveness and national security. The administration holds that the order aligns with efforts to prioritize US economic interests, including renegotiating trade deals like the USMCA and reducing regulations that inhibit domestic business operations.

(With inputs from agencies.)