If the U.S. company finds it worth corrupting the minister or the full government of another state, it can do so. U.S. president Donald Trump eases the enforcement of American law prohibiting the bribery of abroad officials.
It may sound like a joke, but it's not. U.S. president Donald Trump signed an executive order on Monday ordering the Justice Department to suspend the prosecution of Americans accused of bribing abroad government officials while attempting to get or keep interests in various countries.
Foreign Corrupt Practices Act (FCPA) has been in force since 1977. For almost 50 years American companies had an authoritative ban on bribing abroad officials. In time it became a determinant of civilised improvement and global cooperation.
Trump's regulation suspends enforcement of the bill and orders lawyer General Pam Bondi examine current and past law-related activities and prepare fresh enforcement guidelines.
"This will mean a lot more business for America," Trump told reporters erstwhile signing the regulation at the Oval Office. Trump wanted to cancel FCPA already during his first term. He called them “a terrible law.” "The planet laughs at us," he complained.
It's a "terrible" bill, Trump said.
The organization overseeing the fight against corruption Transparency global stated that FCPA has made the United States the leader in the fight against global corruption. Trump's executive regulation "weaks and can pave the way for the complete elimination of the crown jewel in the fight against global corruption," said Gary Kalman, executive manager of Transparency global U.S.
Trump now argues that the US companies are little competitive due to this "terrible" law. "American companies are affected by the excessive enforcement of FCPA due to the fact that they are prohibited from engaging in practices common among global competitors, which creates unequal playing conditions," says the White House.
The Trump Directive calls on the Department of Justice to "change reasonable enforcement guidelines" rules that will not impede US companies competing abroad.
It is worth noting that many American companies, including Goldman Sachs, Glencore and Walmart, have been put under scrutiny over the years.
In 2024, the Department of Justice and the Securities and Exchange Commission launched 26 enforcement actions related to FCPA. The investigation included at least 31 companies.
