Washington: President Donald Trump on Monday signed an executive order directing the Department of Justice to pause enforcement of a longstanding law that prohibits American companies from bribing foreign government officials to secure or maintain business.
According to Kuwait News Agency, Trump expressed concerns that the Foreign Corrupt Practices Act (FCPA) negatively impacts the country. During the signing at the White House, Trump remarked, "Many, many deals are unable to be made because nobody wants to do business, because they don't want to feel like every time they pick up the phone, they're going to jail," highlighting the challenges posed by US anti-corruption measures.
A White House official stated to Kuwait News Agency that the pause aims to reassess the FCPA to align it with economic interests and national security. The pause in criminal prosecutions under the FCPA seeks to prevent American businesses from being at a competitive disadvantage compared to foreign counterparts.
The FCPA, enacted in 1977, aims to curtail American firms from contributing to public corruption abroad, which can undermine the rule of law. Over the years, its rules have become integral to how US businesses conduct operations internationally.
Initially, the FCPA prohibited Americans and certain foreign securities issuers from bribing foreign officials. In 1998, the law expanded to include foreign firms and individuals who facilitated such bribes within the United States. The law encompasses not only direct bribes but also those that are offered, planned, or authorized by a company's management.