Trump Pauses Foreign Corrupt Practices Act (FCPA)

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Context: U.S. President Donald Trump signed an executive order suspending the Foreign Corrupt Practices Act of 1977.

Executive Order on FCPA Suspension

The order halts new FCPA investigations and requires the Attorney General to review the law and issue revised enforcement guidance.
Trump justified the move by claiming that the FCPA puts American businesses at a disadvantage compared to foreign competitors.
The suspension could be extended beyond 180 days depending on the review.
The suspension may benefit the Adani Group and its executives, who are facing bribery-related charges in the United States.

FCPA is an anti-corruption law enacted in 1977 to curb bribery and corruption involving U.S. individuals and entities in foreign countries.
It is enforced by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC).

Prohibition of Bribery: Prohibits offering, paying, promising, or authorizing anything of value to foreign officials to gain or retain business or secure an improper advantage.
Scope of Application – Who is Covered?
- S. Individuals and Companies: Includes citizens, residents, and corporations operating in or from the U.S.
- Foreign Companies and Nationals: If their activities have a connection to the U.S., such as using U.S. banking systems.
- Publicly Listed Companies: All companies listed on U.S. stock exchanges are subject to the FCPA’s accounting provisions.
Jurisdiction: Applies to actions conducted anywhere in the world if they involve U.S. entities or their agents.