President Donald Trump has instructed Attorney General Pam Bondi to pause prosecutions of companies that bribe foreign government officials to win business.
The Foreign Corrupt Practices Act has been “stretched beyond proper bounds and abused in a manner that harms the interests of the United States,” hurting American competitiveness, Trump wrote in an executive order signed Monday.
“It’s going to mean a lot more business for America,” he told reporters while signing the order in the Oval Office on Monday, according to Reuters. He has wanted to strike down the law since his first term in office.
The new executive order directs Bondi to spend 180 days reviewing all current FCPA investigations and enforcement actions against American companies, and issue a set of guidelines and practices that “prioritize American interests.” She can then extend the review period for another 180 days at her discretion.
“Future FCPA investigations and enforcement actions will be governed by this new guidance and must be approved by the attorney general,” the order said.
The order’s legality was not immediately clear. Generally, the Constitution requires the president to “take care that the laws” passed by Congress “be faithfully executed.” Presidents do have some enforcement discretion, but they cannot override laws, according to the ACLU.
In a fact sheet accompanying the executive order, the White House said that “overenforcement” of the FCPA has infringed the president’s authority to conduct foreign affairs and has stopped American companies from “engaging in practices common among international competitors, creating an uneven playing field.”
The fact sheet didn’t elaborate on what the White House considers “overenforcement,” but it did highlight the country’s need for critical minerals and deep-water ports.
Last year, the Department of Justice and the Securities and Exchange Commission filed 26 FCPA-related enforcement actions, with 31 companies under investigation by year’s end, the fact sheet said. Over the past 10 years, officials have brought an average of 36 enforcement actions per year.
Major companies such as Goldman Sachs, Glencore and Walmart have all come under FCPA scrutiny, according to Reuters.
Anti-corruption watchdog Transparency International said the law has made the U.S. a global leader in fighting corruption. Monday’s executive order “diminishes—and could pave the way for completely eliminating—the crown jewel in the U.S.’s fight against global corruption,” executive director Gary Kalman told Reuters.
