On 10 February 2025, President Trump signed an executive order, "Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security" ("EO"): Is anti-corruption compliance on pause?
The EO establishes a moratorium on new investigations and enforcement actions under the FCPA* for 180 days (with the possibility of a 180-day extension) and directs the Attorney General to review current investigations and enforcement actions within the specified timeframe, along with a revision of the guidelines governing FCPA investigations.
Compliance — to be
- The EO does not invalidate the FCPA, which remains law and can only be repealed if Congress or the courts decide to do so. This means that all requirements and restrictions remain in force outside the moratorium.
- The statute of limitations for FCPA violations is five years, exceeding the four-year term of a U.S. president.
- The EO specifically characterizes current FCPA enforcement as an obstacle to achieving foreign policy goals (citing Article II of the U.S. Constitution). However, this does not guarantee that the enforcement approach will not shift in the future.
Further guidance on the EO’s implementation will be provided by the U.S. Attorney General and the Department of Justice (DOJ), including instructions on compliance measures. The new approach will likely focus on streamlining and improving the efficiency of government administration, particularly in relation to investigative procedures.
For now, we recommend maintaining compliance with existing regulations and upholding best practices in anti-corruption compliance to meet the requirements of both the FCPA and national/local anti-corruption laws.
The Lidings team includes experts ready to assist businesses in establishing an effective compliance system and ensuring the efficient operation of compliance functions. At the client’s request, we conduct selective or full audits of internal processes for compliance with anti-corruption legislation. This includes identifying key risks and vulnerabilities, developing a risk map, outlining deviations, and creating a plan to mitigate them, including drafting necessary internal policies and procedures.
*FCPA (Foreign Corrupt Practices Act) is a US federal Foreign Corrupt Practices Act aimed at combating corruption in international activities and has extraterritorial reach.