What You Need to Know About FCPA Enforcement

On February 10, 2025, President Donald Trump signed an Executive Order (EO) dramatically altering the enforcement landscape of the Foreign Corrupt Practices Act (FCPA). The EO orders an immediate pause on new FCPA investigations and enforcement actions while the Department of Justice (DOJ) reviews its enforcement guidelines. Ongoing cases will also be reassessed to ensure they align with the administration’s new priorities.

Key changes include:

• A 180-day pause on new FCPA enforcement actions, with exceptions requiring approval from the Attorney General.
• A review of all past and existing FCPA cases to determine if they were improperly pursued.
• Revised enforcement guidelines to align with American economic and national security interests, prioritizing strategic business advantages.
• Attorney General oversight on any future FCPA cases, ensuring they fit within the new policy framework.

This marks a significant departure from previous administrations, which expanded FCPA enforcement, resulting in billions of dollars in fines and penalties. 

In 2024:

• The DOJ and SEC initiated 26 FCPA-related enforcement actions.
• At least 31 companies remained under investigation by the year’s end.
• Over the past decade, there has been an average of 36 FCPA cases per year.

The Trump administration argues that overzealous enforcement has weakened U.S. businesses by preventing them from engaging in practices common among foreign competitors.

What Is the Foreign Corrupt Practices Act (FCPA)?

The FCPA, enacted in 1977, was designed to prevent U.S. companies from engaging in bribery of foreign officials to gain a business advantage. It has two main provisions:

1. Anti-bribery Provisions 

It forbids U.S. companies, issuers or persons anywhere in the world, or foreign persons while within the U.S., from corruptly offering or paying anything of value, directly or indirectly, to a foreign government official, party or candidate, in order to influence an official act or secure improper advantage to obtain or retain business.

Willful violations of the anti-bribery provisions were punishable by criminal penalties of up to $2 million for companies and $250,000 plus five years imprisonment for individuals, including directors, corporate officers, employees, agents or stockholders. Civil penalties of up to $26,262 could also be applied for companies or individuals found liable, and a disgorgement penalty may be twice the amount gained.

The anti-bribery provisions contain an exception for “grease” payments defined as small payments made to facilitate or expedite “routine governmental actions” such as obtaining licenses and permits to do business in a country, providing police protection, processing visas or government work orders, scheduling inspections, and the like.

There are only two affirmative defenses:

1. Payments are allowed if they are legal under the written laws of the foreign official’s country (but good luck finding a country that publicly allows its officials to be bribed); and
2. Payments made as reasonable or bona fide expenditures directly related to the promotion, demonstration or explanation of products or the execution or performance of a contract with a foreign government or agency.

2. Accounting Provisions 

These require companies to maintain accurate records and internal controls to prevent and detect corruption. They are enforced by the Securities and Exchange Commission (SEC): 

1. Keep books and detailed records that accurately reflect transactions and the disposition of corporate assets;
2. Devise and maintain an adequate system of internal accounting controls; and
3. Conduct a periodic review of recorded and actual assets.

Companies violating the FCPA’s accounting provisions face civil penalties of $118,225 to $1,182,251 per violation. Individuals can be fined $11,823 to $236,451 per violation.

The Administration’s Argument: Why Change FCPA Enforcement Now?

President Trump’s EO frames excessive FCPA enforcement as an obstacle to U.S. global competitiveness. According to the White House fact sheet, the administration believes:

• FCPA enforcement creates an uneven playing field by restricting American companies from engaging in business practices that are standard for international competitors.
• Excessive enforcement drains resources from both businesses and federal law enforcement.
• National security is tied to economic power, particularly in industries like critical minerals, infrastructure and deep-water ports.

What’s Next for U.S. Businesses?

While companies operating internationally can expect a slowdown in FCPA enforcement as the DOJ reevaluates its approach, they should not interpret it as a reason to deprioritize compliance, as changes to the law itself have not been made—only the enforcement strategy is shifting. Anticorruption regulations in other major economies, including the UK Bribery Act and EU laws, might still apply to your business.

Beyond regulatory concerns, bribery remains a financial and operational risk. It can lead to financial mismanagement, reputational damage and legal exposure under other statutes like wire fraud and money laundering laws. The FCPA’s five-year statute of limitations means enforcement could return in full force in a future administration. Businesses that weaken their compliance programs now may find themselves unprepared later.

How to Navigate Changing Compliance Regulations

The first step in navigating fluctuating regulations is having a clear understanding of your compliance responsibilities and establishing an export compliance program that everyone in your company follows. A strong program not only ensures adherence to existing laws but also prepares your business for potential shifts in enforcement priorities.

To help you build a solid compliance strategy, download our free guides:

And for a deeper understanding of the FCPA and what it entails, watch our on-demand webinar: Foreign Corrupt Practices Act: What You Need to Know.

Like what you read? Subscribe today to the International Trade Blog to get the latest news and tips for exporters and importers delivered to your inbox.

This post, originally by Mary K. McCormick, was first published in February 2008. It has been updated to include current information, links and formatting.