On 10 February 2025, US President Donald Trump issued an Executive Order (the Order)1 that required the US Department of Justice (DoJ) to pause, for a period of 180 days (which can be extended), criminal enforcement of the Foreign Corrupt Practices Act (FCPA), a US federal law that has been a cornerstone of the international anti-bribery landscape for nearly five decades. However, international companies operating in the US need to proceed with caution and should not pause their own anti-bribery and corruption programmes. The rationale for the pause is to prioritise American economic competitiveness and we anticipate that US enforcement of the FCPA will be refocused onto non-US entities (albeit that foreign entities have historically been the main recipients of significant US enforcement actions). Conversely, US entities operating internationally need to ensure that they do not fall foul of international bribery laws, including the UK Bribery Act 2010 which has extensive extra-territorial reach and severe sanctions in the event of breach.
What is the effect of the Order?
Under the Order, President Trump directed the US Attorney General to:
- not initiate any new investigations or enforcement actions for the next 180 days
- review existing FCPA investigations or enforcement actions and consider whether further action should be taken, for example in respect of renegotiating existing settlement agreements or issuing pardons for prior convictions
- issue updated guidance to enhance American competitiveness.
Why did President Trump make the Order?
The FCPA has long served as the US Government's principal mechanism for combating bribery. Crucially, the FCPA prohibits US individuals and corporations from offering anything of value to foreign officials to gain a business advantage. The FCPA is of international significance given it applies equally to foreign firms or individuals that issue securities in the US or cause corrupt payments to occur in the US.
In the Order, President Trump expressed concerns about what he termed the historic "overexpansive and unpredictable enforcement" of the FCPA against American citizens and businesses. He stated that such business practices are "routine" in other countries and that the current enforcement approach "actively harms American competitiveness". This perspective aligns with the Memorandum issued by the US Attorney General on 5 February 20252, which directed the DoJ to focus prosecutions on transnational criminal organisations rather than US businesses.
President Trump's approach reflects a protectionist stance on anti-bribery measures, and non-US companies operating internationally should heed the warning that future FCPA enforcement efforts are likely to have a sharpened focus on them. However, that does not mean US companies are off the hook – if they start engaging in practices which constitute bribery and corruption, they are at risk of being targeted by other international law enforcement agencies for breaches of international anti-bribery laws.
Continued international enforcement of the UK Bribery Act 2010
We would expect the UK to take a prominent role in such enforcement given the territorial reach of the UK Bribery Act 2010 (the Act) and the expanding legislative framework for corporate crime and "failure to prevent" offences.
To recap, the Act remains in full force and maintains significant international reach – including potentially over US companies. The Act covers offences committed anywhere in the world by individuals with a "close connection" to the UK, as well as offences committed at least partially in the UK by foreign companies or nationals. Significantly, the Act criminalises a commercial organisation's failure to prevent bribery, and "associated persons" include individuals or entities such as employees, agents, or subsidiaries who perform services for or on behalf of the organisation. This applies regardless of whether the associated person has any direct connection to the UK or where the bribery offence occurs, provided that the organisation is formed in, or is carrying on a business or part of a business in the UK. It also applies to both public and private sector transactions.
This extraterritorial reach underscores the Act's comprehensive approach to combating bribery and corruption on a global scale. It also reflects the UK's overarching expansion of corporate criminal liability with extra-territorial effect; of note is the new "failure to prevent fraud" offence which goes live on 1 September 2025 (and means that large organisations will be criminally liable for corporate failure to prevent fraud unless they can show they have reasonable prevention procedures in place) (see our separate article series here).
This reflects a deeper policy shift in the UK, as evidenced by the recent 2024-2029 strategy report by the UK Serious Fraud Office (SFO) 3. One of the central objectives outlined is to become a "proactive, authoritative player in the global and domestic justice system", with a particular focus on strengthening "global defences against bribery". This emphatic commitment underscores a readiness to utilise the extensive extraterritorial powers granted under the Act to hold offenders accountable and reinforce international anti-corruption standards notwithstanding the recent shifts in US policy.
Conclusion
These developments underscore a divergence in transatlantic approaches to securing national security and prosperity. However, it is crucial to proceed with caution given the likely focus of US prosecutors on to foreign companies and the UK's increasing – and extensive – extraterritorial reach, which may serve as an international counterbalance to the US's recent inward turn.
- US Executive Order: Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security (link)
- US Attorney General Memorandum: Reviving The Federal Death Penalty and Lifting The Moratorium On Federal Executions (link)
- Serious Fraud Office Strategy 2024 - 2029 (link)
