President Trump signed an executive order freezing enforcement of the Foreign Corrupt Practices Act (FCPA), a law that makes it illegal for U.S. companies to bribe foreign officials. Trump stated that the FCPA is enforced in “excessive, unpredictable” ways that put U.S. companies at a disadvantage compared to foreign rivals. The order puts a 180-day “pause” on all FCPA investigations and actions, with no new investigations to be opened during this period.
Critics warn that this move could make American firms targets of bribery demands by public officials and encourage corruption globally. Even with the pause in enforcement, there are anti-bribery laws in place in countries of operation as well as the policies of your own firm or organization that require adherence.
Trump’s administration plans to develop new guidelines for enforcing the FCPA that are more favorable to U.S. businesses. Until these new guidelines are implemented, do not relax your guard.
Read more analysis of the EO here.