New era of anti-corruption enforcement
The second Trump administration has issued executive orders (EO) to quickly shift enforcement priorities, including anti-bribery and anti-corruption (ABAC) laws.
In a recent EO, President Trump paused Foreign Corrupt Practices Act (FCPA) enforcement for a 180-day period.
The EO directs the US Attorney General to:
- Halt new investigations unless an exception is deemed necessary (e.g., involvement of cartels, transnational crime organizations (TCOs), laundering)
- Review current Department of Justice (DOJ) guidelines and policies on FCPA investigations and enforcement actions
- Evaluate and resolve existing FCPA matters based on the president’s foreign policy goals
- Issue updated guidelines prioritizing “America First” interests
The EO was issued on claims that US companies are harmed by FCPA ‘overenforcement’ and the creation of an ‘uneven playing field’ compared to foreign companies.
Key Takeaways for Leadership Teams:
- The EO does not repeal or change FCPA – Rather, the DOJ is changing its approach on enforcement
- Companies remain subject to local and international ABAC laws, industry codes, and applicable compliance programs
- The statute of limitations for FCPA violations remains in effect, with a five-year limit for anti-bribery provisions
- The Trump administration may address SEC’s FCPA enforcement separately
- Compliance functions may face increased strain as individuals take liberties, resulting in the need for continued or increased monitoring
What should organizations evaluate in the short term:
How can we reinforce our commitment to top-down compliance and ethical practices to our employees?
How can we maintain pulse on the volume of business activities and identify anomalies that may indicate non-compliant behavior?
Do our third-party due diligence procedures effectively identify Ultimate Beneficial Owners (UBOs) and assess potential connections with TCOs?
Do changes to enforcement actions adjust our legal budgets and/or crisis management planning?
‘No regret’ actions organizations can take now:
Continue to investigate bribery and corruption allegations and communications regarding the company’s adherence to ethical behavior
Consider bolstering monitoring to identify potential increases in bribery through data analysis and targeted testing of employees and external partners
Conduct proactive assessment of third parties to identify potential connections with TCOs
PwC’s Health Policy and Intelligence Institute
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