Trump's Pause on FCPA Enforcement: Implications for U.S. Businesses and Global Anti-Corruption Efforts

The Trump administration's decision to pause enforcement of the Foreign Corrupt Practices Act (FCPA) has raised concerns about the potential impact on U.S. businesses and global anti-corruption efforts. The FCPA, enacted in 1977, prohibits U.S. companies and individuals from bribing foreign officials to secure business advantages. The act has been a cornerstone of U.S. efforts to combat global corruption, and its enforcement has been a key tool in promoting transparency and accountability in international business transactions.

The Trump administration's decision to temporarily halt FCPA enforcement has been criticized by some as undermining the U.S.'s commitment to combating corruption and weakening the global fight against bribery. The pause in enforcement has been accompanied by a decline in the number of FCPA-related proceedings, raising concerns about the potential for a decrease in global enforcement efforts.

One of the primary concerns is the potential impact on U.S. companies operating internationally. A decrease in FCPA enforcement could create an environment where companies feel less pressure to adhere to strict anti-corruption standards, potentially leading to an increase in bribery and corruption activities. This could harm the reputation of U.S. companies and make them less competitive in the global market. Additionally, the halt in enforcement may discourage companies from investing in robust compliance programs, as they may perceive the risk of FCPA violations as lower. This could lead to a decrease in the overall quality of corporate governance and compliance within U.S. companies operating internationally.

Another concern is the potential impact on international cooperation and anti-corruption efforts. The FCPA is a key tool for the U.S. to combat global corruption, and its enforcement often involves international cooperation. A decline in FCPA enforcement could lead to reduced cooperation with other countries, as seen in the decrease in coordinated resolutions with South Africa and other nations. This could hinder global anti-corruption efforts, as noted by Mike Koehler, who writes the FCPA Professor blog: "The number of coordinated resolutions has been declining, which is a concern because it shows that the U.S. is not working as closely with other countries on these cases" (Witzel & Kutoroff, 2025).

The pause in FCPA enforcement could also have implications for the Trump administration's broader foreign policy objectives and relationships with other nations. The U.S. has historically played a leading role in promoting anti-corruption efforts, and a decrease in U.S. enforcement could lead to a decrease in global enforcement efforts. This could weaken global anti-corruption norms and make it more difficult to combat corruption on a global scale.

In conclusion, the Trump administration's decision to pause enforcement of the FCPA has significant implications for U.S. businesses and global anti-corruption efforts. The potential impact on U.S. companies operating internationally, international cooperation, and global anti-corruption norms highlights the importance of consistent and robust FCPA enforcement for maintaining a level playing field and promoting transparency in international business transactions.