Trump eases implementation of US law banning bribery, drawing mixed reactions
1. US president calls FCPA a "horrible law", says "the world is laughing at us" for enforcing it
Washington: US President Donald Trump has signed an executive order directing the Justice Department to pause prosecutions of Americans accused of bribing foreign officials while conducting business abroad.
The order halts enforcement of the nearly 50-year-old Foreign Corrupt Practices Act (FCPA) and instructs Attorney General Pam Bondi to review past and current enforcement actions, with the goal of drafting new guidelines.
Enacted in 1977, the FCPA prohibits companies operating in the US from bribing foreign officials. Over the decades, it has shaped the way American businesses engage in international markets.
"It's going to mean a lot more business for America," Trump told reporters as he signed the order in the Oval Office on Monday.
Trump has long been critical of the FCPA, attempting to dismantle it during his first term. He has previously called it a “horrible law” and claimed “the world is laughing at us” for enforcing it.
Reactions to Trump's Move
Anti-corruption watchdog Transparency International criticized the decision, arguing that the FCPA has made the US a global leader in fighting corruption.
"This order diminishes — and could pave the way for completely eliminating — the crown jewel in the US fight against global corruption," said Gary Kalman, executive director of Transparency International US.
A White House factsheet defended the move, stating that the law puts American companies at a disadvantage.
"US firms are harmed by FCPA over-enforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field," the statement said.
Trump's directive calls for “revised, reasonable enforcement guidelines” that ensure US businesses remain competitive in global markets.
Over the years, several multinational corporations, including Goldman Sachs, Glencore, and Walmart, have faced scrutiny under the FCPA. In 2024 alone, the Justice Department and the Securities and Exchange Commission pursued 26 FCPA-related enforcement actions, with at least 31 companies under investigation by year-end, according to the White House factsheet.
Experts voiced concerns over the decision.
Mikko Ruotsalainen, Director of Risk Advisory at BDO Finland, called it “a mistake,” warning that corruption drives up trading costs and fosters instability.
Meanwhile, Richard Bistrong, CEO of Front-Line Anti-Bribery LLC, noted that many companies had not been pushing for the change and were unlikely to overhaul their compliance practices in response.
