President Trump’s Executive Order pauses FCPA enforcement for 180 days, instructing the Attorney General to review ongoing investigations and update enforcement guidelines. Companies are advised to maintain strong anti-corruption practices despite changes in enforcement priorities, as risks related to FCPA violations persist and other agencies may continue or increase scrutiny.
On February 10, President Trump issued an Executive Order aimed at pausing the enforcement of the Foreign Corrupt Practices Act (FCPA) for a period of 180 days. This directive indicates a strategic shift in the administration’s approach to foreign bribery enforcement and mandates a review of any ongoing investigations concerning the FCPA.
Key provisions of the Executive Order include a temporary moratorium on new FCPA investigations. The Attorney General is instructed to review all existing cases to align FCPA enforcement with the new priorities of the administration.
During this review, the Attorney General is to develop and publish updated guidelines, requiring specific authorization to proceed with any FCPA investigations initiated after the revision. This pause may be extended for an additional 180 days at the Attorney General’s discretion.
Additionally, this Executive Order follows a memorandum emphasizing the need for the Department of Justice (DOJ) to concentrate on cases related to transnational criminal organizations and cartels, which could potentially narrow the FCPA’s focus significantly.
The Executive Order’s pause on FCPA enforcement indicates a significant change in how businesses should approach compliance. While the enforcement landscape may seem temporarily relaxed, companies should remain vigilant about anti-corruption policies and the law’s implications. Ongoing compliance is essential to mitigate risks associated with potential violations that could arise even during this period of reduced enforcement activity.
Original Source: www.foley.com
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