President Trump recently signed an executive order instructing the Department of Justice to temporarily discontinue enforcing the 1977 Foreign Corrupt Practices Act (FCPA). This law, which aims to prevent bribery by American and foreign companies to secure business deals with foreign governments, will see its enforcement paused as the US Attorney General takes charge of the suspension process.
During the signing, Trump argued that the FCPA placed American companies at a competitive disadvantage in the international market, claiming that the legislation led to almost unavoidable legal investigations when Americans conducted business overseas. He remarked on the practical implications of the law, noting that it discouraged foreign business engagements, a stance he attributed to policies originating during the Jimmy Carter era.
The executive order also mandated that any ongoing legal actions related to FCPA violations, such as prosecutions of individuals and companies accused of bribing foreign officials, be halted immediately. This directive comes amid ongoing high-profile cases, including one involving allegations against Gautam Adani and his nephew, accused of offering significant bribes to secure favorable terms for solar power contracts.