US President Donald Trump has signed an executive order instructing the Justice Department to suspend prosecutions of American individuals and companies accused of bribing foreign officials to obtain business deals.
The order temporarily halts enforcement of the Foreign Corrupt Practices Act (FCPA), a landmark anti-bribery law enacted in 1977, and directs Attorney General Pam Bondi to review its past and present applications. The Justice Department has also been tasked with drafting revised enforcement guidelines.
“The move will mean a lot more business for America,” Trump said at the Oval Office signing on Monday. The former president, who had previously sought to repeal the FCPA during his first term, has criticised the legislation as a “horrible law,” arguing that it places American firms at a disadvantage.
The FCPA prohibits US-linked companies from offering bribes to foreign officials, a measure that anti-corruption watchdog Transparency International has praised as pivotal in the global fight against corporate misconduct.
“Trump’s executive order undermines—and could ultimately dismantle—the cornerstone of America’s anti-corruption efforts,” said Gary Kalman, executive director of Transparency International US.
A White House factsheet justified the suspension by arguing that the law weakens American competitiveness. “US firms face an unfair playing field due to FCPA over-enforcement, which prevents them from engaging in business practices commonly used by international competitors,” it stated. The new directive calls for “reasonable enforcement guidelines” that would allow US companies to operate more freely abroad.
The FCPA has led to high-profile investigations and penalties for major multinational corporations, including Goldman Sachs, Glencore, and Walmart. In 2024 alone, the Justice Department and the Securities and Exchange Commission pursued 26 FCPA-related cases, with at least 31 companies still under investigation by the end of the year, according to the White House.
Critics warn that the suspension of FCPA enforcement could embolden corporate misconduct and erode the United States’ leadership in anti-corruption efforts worldwide. However, the Trump administration maintains that easing restrictions will boost economic competitiveness and attract investment.
