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The order pauses new FCPA criminal cases, directs review of existing cases, and leaves open several questions, including implications for specific business sectors and civil enforcement.

On February 10, 2025, President Trump issued an executive order titled “Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security” (the Order). Among other things, the Order pauses new prosecutions under the Foreign Corrupt Practices Act (FCPA) at the Department of Justice (DOJ) for 180 days and orders a review of existing FCPA cases. (See the Order and the fact sheet.)

The Order states that the FCPA has been “stretched beyond proper bounds and abused in a manner that harms the interests of the United States” and “impedes the United States’ foreign policy objectives” and national security. The Order emphasizes that “American national security depends in substantial part on the United States and its companies gaining strategic business advantages whether in critical minerals, deep-water ports, or other key infrastructure or assets.” The Order criticizes past FCPA enforcement as “overexpansive and unpredictable,” characterizing the US government as having used the FCPA to target its own citizens and businesses for “routine business practices in other nations.”

The Order follows a DOJ memorandum issued last week by Attorney General Pam Bondi titled “Total Elimination of Cartels and Transnational Criminal Organizations” (TCOs). In that memorandum, Attorney General Bondi directs the FCPA unit within DOJ to “prioritize investigations related to foreign bribery that facilitates the criminal operations of Cartels and TCOs, and shift focus away from investigations and cases that do not involve such a connection. Examples of such cases include bribery of foreign officials to facilitate human smuggling and the trafficking of narcotics and firearms.” (For more on DOJ’s recent memorandums, see this blog post.)

Key Elements of the Order

The Order directs the Attorney General to:

  • Conduct a 180-day review of guidelines and policies governing FCPA investigations and enforcement actions (the review period may be extended by an additional 180 days if appropriate)
  • Cease initiation of new investigations or enforcement actions, unless the AG determines an exception should be made
  • Review “all existing investigations or enforcement actions and take appropriate action … to restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives”
  • Issue new guidelines or policies as appropriate to adequately promote “the President’s Article II authority to conduct foreign affairs and prioritize American interests”
  • Specifically authorize any new actions or investigations after future guidelines or policies are implemented
  • Consider “whether additional actions, including remedial measures with respect to inappropriate past FCPA investigations and enforcement actions, are warranted”

Implications and Open Questions

The Order is clear that DOJ will pause new FCPA cases for at least 180 days (although exceptions may be granted). DOJ will review its existing FCPA docket as well as past enforcement actions, and at some point during the 180-day period will issue new guidelines to govern its enforcement of the FCPA.

Open questions about the Trump administration’s FCPA approach include:

  • What policy guidelines will DOJ ultimately produce to govern its FCPA enforcement going forward?
  • Will the guidance prioritize enforcement efforts of non-US companies, given the focus on national security and protecting American people and American businesses in the Order and fact sheet?
  • Will the guidance focus on enforcement (or non-enforcement) of specific sectors or business activities?
    • For instance, although the Order directs a review of DOJ’s FCPA enforcement guidelines in general, both the Order and the fact sheet mention the importance of “[s]trategic advantages in critical minerals, deep-water ports, or other key infrastructure or assets.”
    • Will it focus on cartels and TCOs like in the DOJ memorandum?
  • Will the Order intersect with the DOJ memorandum more broadly, and if so, how? Will the policy themes laid out in the memorandum be echoed in the forthcoming guidance required by the Order?
  • Will the SEC (which is an independent agency that has civil enforcement authority over the FCPA and does not report directly to the president) take similar actions to dial back FCPA enforcement? If not, how will DOJ’s changes impact the SEC’s ability to investigate and enforce FCPA matters?
  • What will be the scope of DOJ’s review of past enforcement matters, and what will the results of that review entail?

Companies will want to monitor and take into consideration these developments as they think about how they manage anti-corruption compliance efforts, how they engage with regulators regarding FCPA matters, and whether prior FCPA enforcement actions may warrant review under the new regime.

Latham & Watkins is closely monitoring FCPA developments under the Trump administration and will continue to provide updates and guidance.