AsianFin -- U.S. President Donald Trump signed an executive order on Monday instructing the Department of Justice to halt the enforcement of the Foreign Corrupt Practices Act (FCPA), a law in effect for nearly 50 years that forbids American and certain foreign companies from bribing foreign government officials to secure business.
"It's good in theory, but it harms the country," Trump remarked about the FCPA as he signed the order at the White House. He expressed concerns that the law was stifling business deals, with individuals reluctant to engage in commerce for fear of legal repercussions. "Many, many deals are unable to be made because nobody wants to do business, because they don’t want to feel like every time they pick up the phone, they’re going to jail."
According to a White House official, the pause aims to better assess and streamline the law to ensure it aligns with the country’s economic interests and national security.
This temporary halt in criminal prosecutions under the FCPA seeks to prevent U.S. businesses from being placed at a disadvantage relative to foreign competitors.
The FCPA, enacted in 1977, was designed to combat the impact of U.S. companies fueling widespread corruption abroad. It was amended in 1998 to include foreign firms or individuals involved in bribery within the U.S. The law applies to not only direct bribes but also any offers, plans, or approvals made by company management to bribe foreign officials.
Violations of the FCPA can result in up to 15 years in prison and a fine of up to $250,000, or three times the value of the bribe involved. In 2024, the DOJ pursued enforcement actions in 24 cases related to FCPA violations, with 17 such actions in 2023.
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