Next steps: Implementation and review period

The executive order instructs the attorney general to conduct a thorough review of all FCPA-related investigations and enforcement actions over the next 180 days. During this period:

• New investigations to be halted: The DOJ will not initiate any new FCPA investigations or enforcement actions unless explicitly authorized by the attorney general.
• Review of existing cases: The DOJ will reassess ongoing FCPA cases to ensure they restore proper bounds on FCPA enforcement and preserve presidential foreign policy prerogatives.
• Updated guidelines: The attorney general will issue revised guidance that reflects the Trump administration’s “America First” policy objectives. Future FCPA enforcement actions will be governed by these new standards and will require express authorization from the attorney general.
• Potential extensions and further actions: The attorney general may extend the review period for an additional 180 days if deemed necessary. Moreover, remedial measures for past enforcement actions that are deemed inconsistent with the administration’s policies may be considered.

Corporate implications and recommended actions

Clients should not interpret this temporary “pause” on FCPA enforcement as an invitation to disband their compliance programs or to engage in open corruption.

• Enforcement by other jurisdictions remains a concern: U.S. companies remain subject to anti-corruption laws in key markets, including Latin America, Europe, and Asia. Many jurisdictions have robust anti-corruption enforcement agencies that continue to actively prosecute bribery and other illicit activities.
• Legal contingencies and future enforcement risks: Companies must recognize that this or a future administration may resume aggressive FCPA enforcement. Given that the statute of limitations for FCPA violations varies depending on the circumstances, there remains a risk of delayed prosecutions once enforcement priorities shift again. As such, anti-bribery compliance efforts should remain a high priority.
• Potential shift in enforcement focus: Based on the executive order’s language and broader administration policies, there is a strong likelihood that future FCPA enforcement will increasingly target foreign companies subject to the statute’s long-arm jurisdiction. This could signal a shift toward leveraging FCPA enforcement as a tool to counteract foreign competition, aligning with the broader objectives of the Trump administration’s economic agenda.
• Uncertainty surrounding FEPA enforcement: It remains unclear how the executive order will impact the Foreign Extortion Prevention Act (FEPA), which targets foreign officials who “corruptly demand, seek, receive, accept, or agree to receive or accept” a bribe. While the DOJ has yet to bring a FEPA case, it gives U.S. prosecutors a significant alternative weapon in the battle against foreign corruption. Since FEPA primarily targets non-U.S. actors, the Trump administration may view this statute as a more strategic tool for advancing U.S. interests while alleviating compliance burdens on American businesses.

Conclusion

This shift in FCPA enforcement introduces both opportunities and risks for companies engaged in international business. Despite the U.S. pause, companies must remain vigilant about anti-corruption laws in other jurisdictions, forthcoming guidance on U.S. enforcement priorities in this area, and potential future shifts in that guidance.

Our team is closely monitoring developments and stands ready to assist clients in navigating the evolving regulatory environment under the new administration.

Client Alert 25-044