Takeaways from the Pause on Foreign Corrupt Practices Act Enforcement
On February 10, 2025 President Trump issued an executive order titled “Pausing Foreign Corrupt Practice Act Enforcement to Further American Economic and National Security.” The order directs the DOJ to halt Foreign Corrupt Practices Act (FCPA) investigations and enforcement actions for a 180-day review period. This is the first pause of FCPA enforcement and investigations since the […]
Kyle Clark, Brendan F. Quigley, and Bridget Moore are Partners at Baker Botts LLP. This post is based on a Baker Botts memorandum by Mr. Clark, Mr. Quigley, Ms. Moore, Derek Cohen, and Jennifer Berger.
On February 10, 2025 President Trump issued an executive order titled “Pausing Foreign Corrupt Practice Act Enforcement to Further American Economic and National Security.” The order directs the DOJ to halt Foreign Corrupt Practices Act (FCPA) investigations and enforcement actions for a 180-day review period. This is the first pause of FCPA enforcement and investigations since the statute was passed in 1977.
According to the executive order and accompanying fact sheet, this significant policy shift aims to address concerns that “overexpansive and unpredictable” FCPA enforcement creates “an uneven playing field” for U.S. companies that threatens national security. The executive order asserts that “the FCPA has been systematically, and to a steadily increasing degree, stretched beyond proper bounds and abused in a manner that harms the interests of the United States.” The order states that current enforcement practices targeting “routine business practices in other nations” waste prosecutorial resources and “actively harm[] American economic competitiveness and, therefore, national security.”
In light of these concerns, the Order implements a 180-day pause on FCPA investigations and enforcement actions. During the pause, the DOJ shall (i) review its guidelines and policies on FCPA investigations and enforcement actions; (ii) abstain from initiating any new investigation or enforcement action unless United States Attorney General, Pamela Bondi determines an individual exception is appropriate; (iii) review all existing investigations and enforcement actions issues and “take appropriate action [] to restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives”; and (iv) issue updated guidelines and policies to “promote the President’s [] authority to conduct foreign affairs and prioritize American interests, American economic competitiveness [], and the efficient use of Federal law enforcement resources.”
