Trump Suspends Enforcement of FCPA, Drawing Criticism from Financial Crime Experts

Donald Trump’s recent decision to suspend enforcement of the Foreign Corrupt Practices Act (FCPA) has sparked significant backlash from financial crime experts, who warn that the move could encourage corruption and weaken global anti-bribery efforts.

The executive order halts enforcement of the 1977 FCPA, a critical U.S. law that prohibits companies from bribing foreign officials. Trump has called the law a “disaster,” arguing that it places American businesses at a disadvantage by exposing them to lengthy investigations and indictments.

The FCPA has been instrumental in major corruption cases, such as a former McKinsey partner’s guilty plea in a South African bribery scandal and a $950 million settlement with defense contractor RTX over allegations of bribery and fraud. Critics caution that suspending the law undermines global anti-corruption initiatives and could embolden corrupt business practices worldwide.

Mikko Ruotsalainen, director of Risk Advisory at BDO Finland, voiced strong opposition to the decision, calling it “a mistake.”

“While it may seem like a short-term relief, the long-term consequences of tolerating corruption are far more detrimental,” he stated. He warned that corruption leads to higher business costs, increased instability, and diminished trust in corporate governance. “Companies end up spending more on bribes and navigating corrupt systems, which ultimately affects their bottom line and stifles innovation,” he added.

Richard Bistrong, CEO of Front-Line Anti-Bribery LLC, questioned whether businesses had lobbied for the policy change. Speaking to Barron’s, he noted that “anti-bribery enforcement is now global,” suggesting that multinational corporations are unlikely to abandon compliance efforts despite the suspension of FCPA enforcement.

Dr. Jens Hillebrand Pohl, director at the Helsinki Geoeconomics School, also criticized the decision, stating that it “undermines a law that has been central to prosecuting international corruption.”

He argued that by sidelining the FCPA, the U.S. is signaling a shift in priorities, focusing more on “strategic commercial advantages” rather than legal accountability. “This reflects a growing trend of delegalization, where laws once central to international business governance are now seen as obstacles to geopolitical competition,” he wrote in a post.

As experts continue to weigh in, the suspension of the FCPA raises serious concerns about the future of anti-bribery enforcement and the broader implications for global business ethics.

By fLEXI tEAM