Trump Pauses New FCPA Action for 180 Days, Orders New Enforcement Guidelines
President Donald Trump on Feb. 10 instructed the attorney general to cease from opening any new investigations under the Foreign Corrupt Practices Act for 180 days so that the Office of the Attorney General can issue new guidelines for FCPA enforcement that "prioritize American interests" and U.S. "economic competitiveness." In the order, Trump said the FCPA has been "abused" and "impedes the United States' foreign policy objectives."
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Any new FCPA investigations will be governed by the new guidelines and "must be specifically authorized by the Attorney General," the executive order said. Once the guidelines come out, the attorney general shall then find whether "remedial measures" are needed to address prior "inappropriate" FCPA actions.
The order also instructs the attorney general to review all existing investigations and "take appropriate action" to "restore proper bounds on FCPA enforcement and preserve Presidential foreign policy prerogatives." The attorney general may also extend the review period for another 180 days if needed.
The president said his authority to issue the order comes as part of his power under Article II of the U.S. Constitution to address "foreign affairs." The executive order said that the president's "foreign policy authority is inextricably linked with the global economic competitiveness of American companies," adding that FCPA enforcement purportedly harms U.S. businesses for engaging in "routine business practices in other nations." The order specifically named critical minerals and deep-water ports as areas in which U.S. companies must remain competitive.
The FCPA is used to combat corruption abroad, often targeted at companies that bribe foreign government officials for access to government contacts. Trump said the "over-expansive and unpredictable" enforcement of the law "not only wastes limited prosecutorial resources that could be dedicated to preserving American freedoms, but actively harms American economic competitiveness and, therefore, national security."