THOMPSON COBURN TRADE ALERT – EXPORTS
HEADLINE	Pause On Certain FCPA Enforcement Actions
DATE	February 10 2025
AGENCY	Department of Justice
EFFECTIVE DATE	February 10 2025 through 9 August 2025 (180 days) or as extended by the Attorney General
BACKGROUND	The Foreign Corrupt Practices Act of 1977 (“FCPA”) as amended in 1998 prohibits American companies and individuals from offering or paying “anything of value” to foreign government officials in order to gain or maintain business and requires publicly traded companies to maintain accurate books and records and robust internal accounting controls to prevent such practices.   President Trump believes that U.S. companies are disadvantaged by excessive FCPA enforcement, which prevents them from engaging in practices common among global competitors, resulting in an uneven playing field. A White House official reported to CNBC that there will be “a pause in enforcement to better assess how to streamline the FCPA, ensuring it aligns with economic interests and national security.”
DETAILS	President Trump’s Executive Order directs Attorney General Pam Bondi to pause FCPA investigations or enforcement actions until new enforcement guidelines are issued, unless an “individual exception” is warranted.   The Attorney General will: (i) halt new FCPA investigations and actions, unless an exception is necessary; (ii) review existing investigations and ensure FCPA enforcement stays within proper limits, while protecting the President’s foreign policy powers; and (iii) issue updated guidelines that prioritize American interests, economic competitiveness, and efficient use of federal resources.   The review may be extended for another 180 days. Any FCPA actions taken after the new guidelines are issued will follow those guidelines and require the Attorney General’s approval. After the updated guidelines are issued, the Attorney General will determine if further actions, including correcting past FCPA issues, are needed and may recommend actions to the President.   The Attorney General’s February 5, 2025, memorandum, “Total Elimination of Cartels and Transnational Criminal Organizations,” states that the FCPA Unit will focus on foreign bribery tied to Cartels and Transnational Criminal Organizations (TCOs), and reduce unrelated investigations.   The FCPA is still in force, and its anti-bribery and accounting provisions have not been suspended or revoked. Duties Do Not Apply to Derivative Steel (Aluminum) Articles processed in another country from steel (or aluminum) articles that were melted (smelted) and poured (cast) in the United States. It is not yet clear how this clause will be interpreted with respect to Chapter 98 HTSUS classifications, and how it will be implemented for any situations where Chapter 98 may not be used.
BASIS	Executive Order
CITE	Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security – The White House Total Elimination of Cartels and Transnational Criminal Organizations Federal Register :: Pausing Foreign Corrupt Practices Act Enforcement To Further American Economic and National Security

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