FCPA - Executive Orders May Shift Priorities, But Anti-Bribery Compliance Must Endure

Over the past week, the White House has announced a series of changes to how the Foreign Corrupt Practices Act (FCPA) will be enforced. First, the Department of Justice was instructed to prioritize investigations where bribery facilitates crimes linked to transnational criminal organizations (TCOs) and cartels - specifically human smuggling, narcotics and firearms trafficking, hacking and cybercrime, and the illegal weapons trade.

Then, on February 10, 2025, the President signed an executive order directing the DOJ to pause enforcement of the FCPA. Attorney General Pam Bondi has been tasked with suspending enforcement until new guidance can be issued to “promote American competitiveness”.

Many are doing a double take...

What Does This Mean for Compliance Professionals?

• No change to statutory requirements: An executive order cannot repeal or amend a law passed by Congress (such as the FCPA). The FCPA remains in force, meaning the legal obligations it imposes on companies, executives, and employees remain unchanged.
• Future administrations or enforcement shifts: Enforcement priorities can - and often do - shift between administrations. What may be paused or deprioritized today can be re-energized under a future administration or even within the same administration if circumstances change.

Compliance Takeaway

Organizations should not abandon or scale back compliance programs based purely on shifting political priorities. Even if federal criminal enforcement temporarily wanes, the law still exists, and enforcement priorities can pivot quickly. A lapse in oversight or a violation now may still be investigated by a subsequent administration, particularly given that the FCPA's five-year statute of limitations allows breaches to be pursued even beyond the current presidential term.

Continued Role of Other Enforcement Bodies

• SEC Enforcement: The Securities and Exchange Commission enforces the civil side of the FCPA, and the White House cannot directly order the SEC (an independent agency) to pause enforcement. Even if the DOJ’s criminal enforcement slows, SEC civil enforcement actions can continue. However, recent procedural changes requiring a majority vote from SEC commissioners before initiating formal investigations - such as issuing subpoenas or compelling testimony - could slow or reduce the number of FCPA actions the SEC pursues.
• Whistleblower incentives: The SEC’s robust whistleblower program still provides substantial monetary rewards for reporting bribery or fraud. This remains a powerful driver for employees, competitors, and others to raise red flags.
• State & International Enforcement: U.S. states can bring domestic related fraud or corruption charges under state laws, and foreign regulators (e.g., UK Serious Fraud Office, Brazil’s Federal Prosecution Service, France’s Parquet National Financier) could still investigate and punish bribery offenses involving U.S. companies.

Compliance Takeaway

Even if the DOJ’s criminal focus shifts, corporate compliance teams need to maintain robust anti-bribery controls to avoid SEC scrutiny, whistleblower complaints, state-level actions, or investigations by foreign regulators. In many jurisdictions, enforcement of anti-bribery laws remains active and increasingly coordinated with other global authorities.

Reputation and Market Expectations

• Investor and stakeholder scrutiny: Many investors and stakeholders require that companies adhere to high ethical standards, regardless of the enforcement climate. Failing to do so can harm brand reputation and trigger shareholder lawsuits.
• ESG pressures: Environmental, Social, and Governance (ESG) considerations increasingly factor into investment decisions. Weak anti-bribery measures can negatively affect an organization’s ESG metrics and access to capital.
• Business partner requirements: Large multinational corporations often require third parties and subsidiaries to have robust anti-bribery policies. A perceived relaxation in a parent company’s posture could still raise red flags among potential partners, customers, or suppliers who fear future liabilities.
• Talent attraction: As Millennials are projected to make up 75% of the workforce by 2025, they are prioritizing employers with strong ethical standards and sustainability practices. In fact, 64% say that they won’t accept offers from companies without a strong CSR policy. Companies that fail to align with these values risk losing out on top talent, as employees increasingly seek socially responsible employers.

Compliance Takeaway

Bribery scandals, even if not prosecuted criminally in the near term, can create reputational and financial damage. Most major companies and their boards will continue to expect strong compliance, no matter the DOJ’s short-term stance.

Internal Culture and Ethical Standards

• Slippery slope risk: Relaxing internal oversight due to a perceived enforcement gap can cultivate a culture where unethical practices take root. Once such practices become normalized, reversing them is far more difficult.
• Employee confusion: A public or internal shift away from compliance diligence can confuse employees who have been trained to follow strict anti-corruption policies. It may lead them to inadvertently cross lines in ambiguous circumstances.

Compliance Takeaway

Maintaining clarity, consistency, and high ethical standards is critical - especially in uncertain legal and political environments. This avoids a lapse in morale or vigilance that could backfire when enforcement inevitably tightens again.

Executive Leadership and the Board

• Reconfirm Commitment to Fair Competition: Ensure executive leaders and the board explicitly reaffirm that the company competes vigorously but ethically and that bribery is never an acceptable route to closing deals.
• Communicate Expectations Company-Wide: Once senior-level commitment is secured, these stances should be communicated from the top down (ideally through business leaders rather than solely through compliance). Clear messages help prevent any employee from making a “best interest of the company” misjudgment.
• Align Compliance Resources with Strategic Goals: Emphasize that a strong anti-bribery program not only mitigates legal risk but also protects the organization’s reputation and long-term viability - values typically shared by executives and board members.

Compliance Takeaway

Securing top-level buy-in from senior leadership and the board is critical to maintaining a unified stance against bribery. By clearly articulating ethical expectations, organizations can mitigate the risk that employees might perceive a temporary enforcement pause as permission to engage in unethical or unlawful conduct. This alignment between leadership and compliance fosters a consistent, organization-wide culture of integrity.

Practical Steps for Compliance Teams

Even with a pause or refocus of DOJ criminal enforcement, compliance leaders should:

1. Engage Executive Leadership and the Board
   • Compliance should have robust conversations with executive leadership and the board to ensure they are all committed to a firm anti-bribery and corruption stance.
   • This commitment should be clearly communicated through the organization (preferably through the business rather than by compliance).
2. Stay the Course on Anti-Bribery Protocols
   • Conduct periodic risk assessments, especially in high-risk markets.
   • Continue due diligence on third parties, agents, and distributors.
   • Maintain robust internal controls and documentation.
3. Monitor Regulatory and Policy Changes
   • Keep abreast of DOJ and SEC guidance, as well as changes in leadership.
   • Watch for signals about which cases are still being pursued (e.g., cartel/TCO facilitation).
4. Coordinate with Legal and Audit Teams
   • Ensure that changes to enforcement policy are accurately interpreted - an enforcement “pause” or narrower scope does not mean a repeal of the FCPA.
   • Confirm that your SEC compliance posture remains robust, as civil enforcement is unaffected by an executive order.
5. Reinforce Training and Communications
   • Update employees on any relevant policy shifts to avoid misunderstanding.
   • Emphasize that the company’s code of conduct remains in force and that bribery or unethical behaviors are not tolerated.
6. Prepare for Whistleblower or Civil Actions
   • Strengthen internal reporting mechanisms to address issues before they escalate externally.
   • Remain aware that reputational risk and shareholder suits can be triggered by allegations of bribery, even if DOJ enforcement is slow.
7. Retain a Global Perspective
   • Many U.S.-based multinationals operate in jurisdictions with strong local anti-bribery laws (e.g., UK’s Bribery Act, Brazil’s Clean Company Act, France’s Sapin II).
   • Non-U.S. authorities can (and do) collaborate with U.S. authorities - while the DOJ may slow, other enforcers might pick up the slack.

In a Nutshell

Although an executive order or DOJ policy shift might temporarily suspend FCPA prosecutions, the law itself remains on the books and is still enforced by other bodies, including the SEC. ABAC continues to remain a priority across foreign regulators, as well as ethical enterprises, shareholders and employees.

From a practical and risk-management standpoint, most organizations will continue robust ABAC compliance programs to avoid reputational harm, civil liability, and the pitfalls of inconsistent enforcement priorities.

For compliance teams, the core message is “stay vigilant.” Do not dismantle or downgrade your anti-bribery frameworks simply because of short-term enforcement updates. Maintaining consistent, well-documented compliance practices is the most prudent path - legally, reputationally, and operationally.

Because good deserves better.