Policy update: Trump makes changes in enforcement of overseas business practices

In a move that has sent ripples through the international community, President Trump has taken a controversial stance on the Foreign Corrupt Practices Act (FCPA), a cornerstone of the United States' efforts to combat global corruption.

By signing an executive order that affects the enforcement of the FCPA, Trump has sparked a debate that touches on the very principles of fair play and the rule of law in international business.



The FCPA, established in 1977, has long been hailed as a vital tool in the fight against the bribery of foreign officials. It has been instrumental in maintaining a level playing field for American businesses abroad and has set a standard for corporate behavior worldwide.

However, detractors argue that the act puts American companies at a disadvantage, as it restricts their ability to compete in markets where bribery is seen as a part of doing business.

Trump's executive order introduces a 180-day “pause” on all FCPA investigations, with a directive that no new investigations be initiated during this period. He said, "It sounds good on paper but in practicality, it's a disaster. It's going to mean a lot more business for America."

This hiatus is intended to allow the administration to review and potentially establish new guidelines for enforcing the law in a manner that Trump believes will not disadvantage US companies.


Screenshot 2025-02-13 at 14.20.01.png
President Trump signed an executive order to temporarily halt enforcement of the Foreign Corrupt Practices Act (FCPA). Image source: Forbes Breaking News / Youtube.



While Trump cannot overturn the law, he can change how it is implemented and transfer resources to other Justice Department priorities.

The implications of this decision are profound. On one hand, easing FCPA enforcement could indeed open up new business opportunities for American firms.

On the other, it risks undermining the global fight against corruption, potentially encouraging other nations to relax their own anti-bribery measures to remain competitive.

This could lead to a “Wild West” scenario, as described by Mark Pieth, a criminal law professor and anti-bribery law expert. "It will be everyone against everyone."

Trump's rationale for the freeze is that the FCPA has been enforced in “excessive, unpredictable” ways, creating an uneven playing field for US companies and draining resources from law enforcement.



He also argues that the law hinders US national interests by preventing companies from engaging in deals that could provide access to strategic assets like deep water ports and critical minerals.

Duncan Levin, criminal defense attorney, shared, "He can't get rid of the law, but he can refuse to enforce it. I don't think this is just a pause." The FCPA's track record speaks to its effectiveness in uncovering and penalizing corrupt practices.


Source: Vubiz eLearning / Youtube.​


High-profile cases, such as the military contractor RTX's $300 million settlement over alleged bribes in Qatar and Walmart's $282 million settlement related to store openings in Mexico, India, and Brazil, highlight the law's role in holding corporations accountable.

Jointly enforced by the Securities and Exchange Commission and the Department of Justice, the FCPA carries significant penalties for violations, including imprisonment of up to 20 years and hefty fines for companies. These measures have been crucial in deterring corrupt practices and ensuring that businesses operate with integrity.



Critics of Trump's decision fear that by sidelining the FCPA, the US is signaling a retreat from its commitment to ethical business practices. Since the FCPA was implemented almost 50 years ago, US businesses have complained that it was harming them due to bribes becoming commonplace in other countries.

Due to pressure from the US, allies in the Organization for Economic Cooperation and Development created their own laws, following the fall of the Berlin Wall in 1989.


Source: Forbes Breaking News / Youtube.​


Eventually, 40 wealthy countries also implemented anti-bribery laws based on the FCPA, adding the ability to prosecute foreign companies operating in their countries for acts that were done in a third country.

Furthermore, it could lead to legal complications for US companies, as other countries with similar laws, like France and Britain, may still pursue legal action against companies that engage in bribery on their soil or against their officials.

Also read: Trump’s proposal to use Guantanamo Bay for "criminal aliens": What it means for the future

Key Takeaways
  • President Trump signed an executive order to temporarily halt enforcement of the Foreign Corrupt Practices Act (FCPA), a law that prohibits bribery of foreign officials by US entities.
  • The executive order puts a 180-day pause on all investigations and actions under the FCPA, potentially affecting ongoing prosecutions.
  • Critics fear that this move may signal a retreat from the fight against corruption, tarnish America's business reputation, and encourage corrupt practices globally.
  • The FCPA is important for promoting fair competition and curbing global corruption costs, and its enforcement has been jointly carried out by the Securities and Exchange Commission and the Department of Justice.

Have you witnessed the impact of corruption in your personal or professional life? How do you think the United States should balance the need for competitive business practices with the imperative to fight corruption? Share your thoughts in the comments below, but please remember to remain respectful.
 
People who are familiar with business in a great many countries around the world greasing the palms of government officials as well as CEOs and other companies management in order to win a contract or keep one.

Is bribery right?

Morally no, but in many countries it is a standard business practice.

American businesses lose a lot of business due to not being able to compete.

Bribery is wrong, but it has been going on forever.
 
Trump is a very successful businessman, has personal knowledge of foreign business and the majority of Americans trust him to make the best decisions for our country. We wouldn't have voted for a person we didn't trust. We saw what the Democrats did to us and said "no thanks". All these scare tactics need to stop and now!
 
Hi, @nitram! I agree, bribery is certainly a complex issue that varies across cultures, industries, and legal systems.

While it remains an unethical and often illegal practice, many businesses continue to face the reality of competing in environments where corruption is a part of.

American companies, and others operating under strict anti-bribery laws like the FCPA (Foreign Corrupt Practices Act) or the UK Bribery Act, often find themselves at a disadvantage in regions where informal payments are the norm. However, there is also an argument that such laws promote long-term economic stability and fairness.

Would reducing corruption benefit businesses in the long run, or is it simply an unavoidable part of global commerce? Curious to hear your thoughts!
People who are familiar with business in a great many countries around the world greasing the palms of government officials as well as CEOs and other companies management in order to win a contract or keep one.

Is bribery right?

Morally no, but in many countries it is a standard business practice.

American businesses lose a lot of business due to not being able to compete.

Bribery is wrong, but it has been going on forever.
 
Trump is a very successful businessman, has personal knowledge of foreign business and the majority of Americans trust him to make the best decisions for our country. We wouldn't have voted for a person we didn't trust. We saw what the Democrats did to us and said "no thanks". All these scare tactics need to stop and now!
Hi, @debkid! We believe that political opinions are always deeply personal, and trust in leadership is a big factor in elections. Many voters support candidates based on their track record, policies, or how they align with their values. Others may have different perspectives based on their experiences and priorities.

Healthy debate is important in any democracy, so let's remember to always remain respectful with each other 🤍 What specific policies or decisions do you think best demonstrate strong leadership? It would be interesting to hear what you and others think on this topic!
 

Join the conversation

News, deals, games, and bargains for Americans over 60. From everyday expenses like groceries and eating out, to electronics, fashion and travel, The GrayVine is all about helping you make your money go further.

The GrayVine

The GrayVine searches for the best deals, discounts, and bargains for over 60's. From everyday expenses like groceries and eating out, to electronics, fashion and travel, we're all about helping you make your money go further.
  1. New members
  2. Jokes & Fun
  3. Photography
  4. Nostalgia / Yesterday's America
  5. Money Saving Hacks
  6. Offtopic / Everything else
  7. News & Politics
Share With a Friend
Change Weather Zip code ×
Change Petrol Postcode×