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Deputy Attorney General Todd Blanche announced a change to the way the Foreign Corrupt Practices Act (FCPA) is enforced. The new guidelines are intended meet the policy objectives of scaling back the regulatory burden on U.S. companies and pinpointing “conduct that directly undermines U.S. national interests.”
The new guidelines resume the Depratment of Justice’s (DOJ) FCPA enforcement, which was halted by President Donald J. Trump in February by executive order. The EO paused FCPA enforcement for 180 days and directed the DOJ to review enforcement guidance.
The new guidance focuses on narrowing the scope of investigations and directing them at real threats, including the elimination of Cartels and Transnational Criminal Organizations (TCOs).
“At @POTUS Trump’s direction, this Justice Department has overhauled FCPA enforcement to protect American businesses and sharpen our national security focus,” Blanche wrote on X. “We’re ending abusive overreach and closing cases that never should’ve been opened.”
“As the President rightly noted, FCPA enforcement in recent vears was extended beyond its original intent, burdening American companies and harming our national interest.”
In an attached image, he explained:
“As a result of this review, the Department has already closed approximately half of the open investigations initiated under the previous Administration. We are shifting prosecutorial resources toward cases that clearly implicate U.S. national security and economic competitiveness, rather than penalizing legitimate business operations abroad.
“Under this Administration, the FCPA will be enforced firmly but fairly, targeting misconduct that undermines American companies and our global standing, while eliminating unnecessary burdens. These new guidelines are effective immediately and apply to all new and existing matters.
The National Law Review further explains (emphasis added):
The [New] Guidance directs prosecutors to:
-Target individual wrongdoing rather than “attribute nonspecific malfeasance to corporate structures.”
-Accelerate investigation timelines, conducting and concluding investigations with maximum efficiency.
-Consider broader impacts throughout the investigation, including “potential disruption to lawful businesses and the impact on a company’s employees.”
-The Guidance also sets forth certain criteria to aid prosecutors in determining whether to initiate or pursue FCPA matters, including the following key factors, which align with recent directives and revised corporate enforcement priorities announced by the DOJ (we discussed here and here).
Total Elimination of Cartels and Transnational Criminal Organizations (TCOs)
The Guidance reinforces that a “primary consideration” for the DOJ in determining whether to proceed with an FCPA matter is the nexus between alleged misconduct and cartel and TCO activity. Specifically, the Guidance sets forth the following factors for prosecutors to weigh regarding the alleged misconduct: (1) whether the misconduct “is associated with the criminal operations of a Cartel or TCO”; (2) if the misconduct “utilizes money launderers or shell companies that engage in money laundering for Cartels or TCOs”; or (3) whether the misconduct “is linked to employees of state-owned entities or other foreign officials who have received bribes from Cartels or TCOs.”
Attorney Amy Nelson summarized what the changes mean to some in the legal community in an X post.
“A lot of well paid former federal prosecutors who bill companies tens of millions for years long investigations run by their friends still at DOJ are *super pissed* right now that Trump just shut down their gravy train,” Nelson claimed.
A lot of well paid former federal prosecutors who bill companies tens of millions for years long investigations run by their friends still at DOJ are *super pissed* right now that Trump just shut down their gravy train.
DOJ didn’t actually prosecute FCPA cases. https://t.co/Qhzjxs4HO9
— Amy Nelson (@Amy_K_Nelson) June 11, 2025
READ MORE AT The National Law Review.
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