FCPA Enforcement Paused: Compliance Risks Persist Amid Policy Shift

According to an article by Holland & Knight, the Trump Administration has fundamentally shifted US enforcement of the Foreign Corrupt Practices Act (FCPA). Despite the Department of Justice (DOJ) previously touting 2024 as a “Banner Year” for FCPA prosecutions, a new Executive Order (EO) issued on Feb. 10, 2025, effectively pauses enforcement. The administration argues that aggressive FCPA enforcement hinders American companies’ competitiveness and national security interests.

A Feb. 5, 2025, DOJ memorandum by Attorney General Pam Bondi signaled this shift, directing resources toward foreign bribery linked to drug cartels and transnational criminal organizations (TCOs) while deprioritizing other cases. The EO further limits enforcement by instructing the DOJ to halt new investigations, review ongoing cases, and issue updated FCPA enforcement guidelines aligned with the administration’s economic and foreign policy objectives.

Notably, the FCPA remains law, as only Congress can repeal it. However, FCPA enforcement is on hold for at least 180 days, with potential extensions. Despite this pause, corporate compliance teams should maintain robust anti-bribery controls. 

Future DOJ guidance is uncertain, and other statutes, such as the Foreign Extortion Prevention Act (FEPA), remain in effect. Additionally, foreign governments have their own anti-bribery laws that could still expose US businesses to risk.

Key Takeaway for Risk and Compliance officers: While FCPA enforcement is temporarily deprioritized, companies should not assume long-term immunity. Maintaining strong compliance programs is critical to mitigate risks from evolving US and international anti-corruption frameworks.