White Collar Crime

Trump pauses enforcement of foreign bribery law, cites harm to 'American economic competitiveness'

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Donald Trump

President Donald Trump with House Majority Leader Steve Scalise, R-Louisiana, and Vice President JD Vance after being sworn in Jan. 20. (Photo by Melina Mara/The Washington Post)

President Donald Trump signed an executive order Monday that that generally pauses enforcement of a law that bars companies operating in the United States from bribing foreign officials.

The Feb. 10 order requires U.S. Attorney General Pam Bondi to formulate updated guidelines for enforcing the Foreign Corrupt Practices Act that “prioritize American interests, American economic competitiveness with respect to other nations, and the efficient use of federal law enforcement resources.”

Bondi has 180 days to work on the guidelines and has the option of extending the period for another 180 days, the order said. During that time, Bondi should stop new Foreign Corrupt Practices Act investigations or enforcement actions, the order said. She is also required to review existing investigations and actions, taking action to restore proper bounds on enforcement. Bondi can determine whether an exception to the pause should be made in individual cases, however.

A White House fact sheet said “unpredictable FCPA enforcement” makes American companies less competitive. Overenforcement of the law also interferes with Trump’s authority to conduct foreign affairs under Article II of the Constitution, the document said.

Bondi issued a memo Feb. 5 that directs Department of Justice lawyers to prioritize Foreign Corrupt Practices Act prosecutions in which foreign bribery facilitated crimes of cartels and transnational criminal organizations, according to an analysis by Arnold & Porter Kaye Scholer. The law firm also said the statute of limitations in Foreign Corrupt Practices Act cases “outruns the Trump administration,” meaning that a prosecution could be fair game after Trump leaves office.

Publications with coverage of Trump’s order include Reuters, CNBC, Fox News and the New York Times.