On June 9, 2025, US Deputy Attorney General Todd Blanche issued a memorandum of new guidelines to federal prosecutors for investigations and enforcement of the Foreign Corrupt Practices Act, 1977 (the “FCPA”). This is further to the Executive order dated February 10, 2025, by US President Donald Trump directing the US Attorney General to pause enforcement of the FCPA till new enforcement guidelines and policies for FCPA enforcement were introduced.

These new guidelines (“Guidelines”) indicate that focus of the US Department of Justice (“DoJ”) while undertaking FCPA investigations and prosecutions will be to (i) limit the undue burden on US companies operating abroad and (ii) target enforcement actions against conduct directly undermining US national interests. Further, the Guidelines also direct federal prosecutors to focus on case in which individuals have engaged in criminal misconduct, proceed with investigations as expeditiously as possible, and consider collateral impact of investigations and subsequent resolution. The Guidelines also specify that all new FCPA investigations and / or enforcement actions must be authorized by the Assistant Attorney General for the Criminal Division or a more senior DoJ official.

In this regard, the Guidelines set forth the following non-exhaustive factors for evaluating whether to pursue any FCPA investigations and enforcement actions:

1. Elimination of Cartels and Transnational Criminal Organizations (“TCOs”): A primary consideration for prosecutors is whether the alleged misconduct i.e., the alleged bribery or corruption (i) is associated with the criminal operations of any Cartel or TCOs; (ii) involves money laundering or shell companies engaging in money laundering for Cartels or TCOs; or (iii) is linked to employees of state-owned entities or foreign public officials who received bribes from any Cartel or TCOs.
2. Safeguarding Fair Opportunities for US companies: Prosecutors should consider whether the alleged misconduct denied fair access to compete and / or resulted in economic injury to specific and identifiable to specific and identifiable US entities and / or individuals. In this context, the DoJ will pursue US interests by identifying and prioritizing investigations and prosecution of conduct most undermining these principles and not by focusing on particular individuals or companies on the basis of their nationality.
3. Advancing US National Security: FCPA enforcement will focus on the most urgent threats to US national security emanating from the bribery of corrupt foreign public officials involving key infrastructure or assets. The Guidelines note that corruption in sectors like defense, intelligence, or critical infrastructure, may harm US national security interests.
4. Prioritizing Investigations of Serious Misconduct: The focus of FCPA enforcement will be on alleged misconduct that strongly indicates corrupt intent tied to particular individuals, and not those involving routine business practices or low value de minimis generally accepted business courtesies. Additionally, the Guidelines also direct prosecutors to consider the probability of another foreign law enforcement authority willing and able to investigate and prosecute the alleged misconduct, to prioritize cases to be actioned by US authorities.

While further clarity in relation to the Guidelines and their impact remains to be seen, it is apparent that FCPA investigations and / or enforcement actions will continue in the foreseeable future. Contrary to preliminary indications that the ambit of FCPA enforcement actions was being trimmed or deprioritised, the Guidelines clearly set out that going forward, the focus of FCPA enforcement actions will be on cases with US national security implications, ties to transnational crime and / or protection of US business interests.

Therefore, it is imperative that corporations especially those operating internationally and Non-US entities competing with US entities in areas of strategic importance, consider reassessing their corporate compliance programs and recalibrating their risk assessments, while ensuring that internal investigations are comprehensive and aligned to identify and hold individual offenders accountable.

If you wish to discuss this further, please feel free to reach out for a chat.