On February 10, 2025, President Donald Trump issued an executive order pausing enforcement of the Foreign Corrupt Practices Act (FCPA) for at least 180 days. This move has sparked intense debate over whether it effectively legalizes bribery for American businesses operating overseas—or if it simply removes what some see as unnecessary obstacles to US economic competitiveness.
What Is the FCPA?
Enacted in 1977, the FCPA prohibits American companies from bribing foreign officials to secure business deals. The law was designed to combat corruption and level the playing field, preventing unethical business practices that could undermine international markets. However, in recent years, FCPA enforcement has expanded significantly, with aggressive prosecutions and massive fines imposed on US companies and executives.
While the law was initially intended to target clear cases of corruption, critics argue that it has been stretched too far, punishing companies for common business practices in countries where informal payments are often the norm. Some US businesses believe that strict FCPA enforcement has put them at a disadvantage compared to foreign competitors who operate under fewer restrictions.
What Does Trump’s Executive Order Do?
The order temporarily halts new FCPA investigations and enforcement actions for 180 days while the Department of Justice (DOJ) reviews its approach to the law. Specifically, it directs the Attorney General to:
Once new enforcement policies are in place, any future FCPA case must receive personal approval from the Attorney General—a major shift that could significantly reduce prosecutions.
Why Is This Happening?
The Trump administration argues that overzealous FCPA enforcement hurts US businesses and national security by making it harder for American companies to compete globally. The order suggests that FCPA prosecutions waste federal resources and interfere with presidential authority over foreign affairs.
The White House claims that gaining strategic business advantages—such as securing access to critical minerals, deep-water ports, and key infrastructure—is essential for US economic and national security. According to the administration, current FCPA enforcement makes it more difficult for American businesses to operate in foreign markets and gives an edge to international competitors who are not bound by similar laws.
What Are the Potential Consequences?
The Bottom Line
Trump’s executive order is a major shift in US anti-corruption policy. While it is framed as a way to protect American business interests, it raises concerns about the erosion of ethical standards in global commerce. The long-term effects will depend on how the DOJ reshapes enforcement and whether future administrations choose to restore the FCPA’s full power.
LiveWorld News Live: Get real-time updates on international politics, economic changes, conflicts, and environmental issues. Access the latest breaking news and
Google maps has changed the Gulf of Mexico's name to the Gulf of America for people using the app in the US.Explaining the move, Google said it was making the c
Dharshini DavidChief Economics CorrespondentBBCPresident Trump's sweeping set of tariffs are intended, in part, to protect American industries, raise money and
IE 11 is not supported. For an optimal experience visit our site on another browser.Now PlayingHow the USAID freeze impacts American farmers and hungry people a