US President Donald Trump signed an executive order on Monday regarding the FCPA. He directed the Department of Justice to temporarily suspend prosecutions of Americans accused of bribeing foreign government officials.
The law has been in place since 1977, and costs many business owners a lot and can even land in prisons. One of the publicly recorded cases was the experience of Tigran Ganbarian with the Nigerian government. The Nigerian government “takes hostages” as he did not meet their demands, so he wanted the body from the “hostages”.
Details of the FCPA Act
Trump’s Order Suspends enforcement of the Foreign Corruption Practices Act (FCPA). He also indicted Attorney General Pam Bondi to review current and past actions related to the law and prepare new guidelines for enforcement.
Laws almost half a century ago do not allow businesses operating in the United States to bribe foreign authorities. This is a guide to how American companies operate overseas, and Trump believes relaxing the law is a good thing for American companies.
“It would mean more business for America,” Trump himself said Monday as he signed the order in his oval office. POTUS has always had it for the FCPA, even from his first term.
He called it “terrifying law” and said, “The world is laughing at us.” The statement means that it has done more harm than good. However, FCPA has pioneered the US in dealing with global corruption, according to Anti-Corruption Watchdog Transparency International.
The FCPA served as some kind of moral conscience for businesses operating outside the US, but in many cases it works for businesses.
One good example happened when Tigran Ganbarian was remanded in Nigeria for eight months in 2024. With years of experience as a top crypto detective for Binance and a financial detective for the IRS, specializing in Crypto Crimes, Gambarian was chosen to represent the company. Nigeria’s peacekeeping mission.
At the time, the country accused Binance of playing a role in devaluing Naira and reportedly funding terrorists. Binance sent a national team to resolve this issue, but when the team arrived they learned that staff wanted to pay $150 million in funding directly to their wallets with a code. I did.
The FCPA was a clear hurdle in that scenario. The gambarians who worked for the IRS were well aware of how it worked. If they give such a direct bribery, they will violate the law. There was also a suggestion that if Nigerians do not meet their requirements they would not let them leave.
It presented a dilemma to the Gambarians. They rushed to the retreat house, but unfortunately, the Gambarian was taken hostage for almost a year in terrible condition.
It takes US government intervention to take him home, and experience always leaves a bitter taste in his mouth while he tries to continue his life now. The Gambarians, who are reportedly considering their role in the Trump administration, will certainly approve the president’s executive order.
The meaning of Trump’s order
Trump’s executive order will have great consequences for the United States and its businesses. Gary Kalman, executive director of Transparency International US, said “the finest gems in the fight against global corruption could pave the way for utter elimination.”
The White House fact sheet says the law will reduce American businesses’ competitiveness.
“U.S. companies are harming FCPA over-enforcement because they are forbidden from engaging in common practices among international competitors and creating uneven playing field.” and read the fact sheet.
Trump is seeking “revised and reasonable enforcement guidelines” from the Justice Department that do not hinder American companies competing overseas, the fact sheet said.
Since the law was passed, a wide range of multinational companies have fallen under scrutiny by the Department of Justice because of laws, including Goldman Sachs.
In 2024, the Department of Justice and the Securities and Exchange Commission filed 26 FCPA-related enforcement measures, with at least 31 companies under investigation by the end of the year.
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