Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security

President Trump’s executive order on “pausing foreign corrupt practices act enforcement to further American economic and national security” has been created in response to what he perceives as an overzealous and unfair implementation of the Foreign Corrupt Practices Act (FCPA). The FCPA is a federal law that prohibits US companies from making payments to foreign officials for the purpose of obtaining or retaining business. The executive order seeks to put forth guidelines that would allow the Attorney General to review and potentially reverse any enforcement actions against individuals or companies that violate the FCPA. However, the order also states that investigations and enforcement actions initiated before the updated guidelines are issued will continue to be governed by current policies.
The executive order seems to indicate a desire on President Trump’s part to prioritize American economic competitiveness in global markets, as well as preserve his Article II authority over foreign affairs. However, it remains unclear how exactly the FCPA enforcement would be “paused” and for what period of time, and whether this will have any impact on US companies’ ability to do business abroad. It is also uncertain how the updated guidelines or policies that are expected to be issued under subsection (a) of Section 2 of the order will address potential concerns about the FCPA’s overly broad application in global markets.