...
By Sophie Clark
Live News Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
President Donald Trump has called for an end to an act that prohibits American businesses from bribing foreign governments to gain business deals abroad.
On Monday, Trump issued an executive order for U.S. Attorney General Pam Bondi to pause enforcement of the Foreign Corrupt Practices Act (FCPA) of 1977.
Why It Matters
Trump says this decision will make American companies more competitive abroad.
Read More on Politics
However, the anti-corruption organization Transparency International says the decision will remove the United States from its place as a front-runner in the fight against corruption.
Newsweek reached out to Transparency International via email for comment.
...
What To Know
Trump's directive from Monday means that federal authorities are no longer allowed to start investigations about or enforce the FCPA until the attorney general issues revised guidance on how the FCPA can be used to promote American competitiveness.
During this time, the administration will also review current FCPA investigations, The New York Times reported.
Trump has criticized the FCPA for over a decade, telling CNBC in 2012 that the world is "laughing at" the U.S. He tried to get rid of it in his first term but was told not to by adviser Stephen Miller.
The U.S. sits at number 28, out of 180, on the Transparency International rankings of countries' corruption levels. Transparency International gives countries a score out of 100 each year. The U.S. fell from its high of 76 in 2015 to 65 in 2024.
Some high-profile cases under the FCPA include Goldman Sachs paying $2.9 billion in fines in 2020 for a bribery scheme. The company schemed to pay over $1 billion in bribes to Malaysian and Emirati government officials to gain lucrative contracts.
Federal prosecutors in New York charged one of the world's wealthiest men, Gautam Adani, with multiple counts of fraud related to bribing Indian government officials for solar energy contracts in November 2024. Adani Green Energy allegedly used falsified statements about his anti-corruption practices to raise money from U.S. investors.
Adani denies these allegations.
...
What People Are Saying
President Donald Trump, in his executive order: "We have to save our country. Every policy must be geared toward that which supports the American worker, the American family, and businesses, both large and small, and allows our country to compete with other nations on a very level playing field..."
Gary Kalman, executive director of Transparency International, in a statement to The Guardian: "[This decision] diminishes – and could pave the way for completely eliminating – the crown jewel in the US's fight against global corruption."
What Happens Next
The FCPA will be put on pause until Bondi revises the law. It is unclear what the Trump Administration plans to do following that pause or how the law will be revised.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines