U.S. President Donald Trump signed an executive order pausing the Foreign Corrupt Practices Act (FCPA) of 1977 for a period of at least 180 days until the Attorney General completes a review of the legislation. File
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U.S. President Donald Trump on Monday (February 10, 2025) signed an executive order pausing the Foreign Corrupt Practices Act (FCPA) of 1977 for a period of at least 180 days, until the Attorney General completes a review of the legislation.
The move may come as a reprieve to the conglomerate Adani Group, its billionaire founder Gautam Adani and other executives, who, in November, were charged by the U.S. Securities and Exchange Commission (SEC) and the U.S. Attorney’s Office for the Eastern District of New York in connection with an alleged bribery scheme. The law prohibits the bribing of foreign governments, political parties and others to secure business.
It is unclear how Monday’s order would impact any investigations into the Adani Group. While it pertains only to new investigations, enforcement actions already initiated would be subject to the new guidelines the Justice Department develops. The order says the pause can be extended beyond the initial suspension of 180 days. During this time, Attorney General Pam Bondi, a Trump loyalist, is required to cease any new FCPA investigations and review existing ones. After the new guidelines are in place, the Attorney General could institute “remedial measures” with respect to “inappropriate” investigations.
Charges for violating the FCPA were central to the allegations of bribery amounting to $250 million (₹2,100 crore) that allegedly took place between 2020 and 2024. Mr. Adani, his nephew Sagar Adani and another executive Vneet S. Jaain, while not charged for violating the FCPA directly, were charged with conspiracy to commit wire fraud and securities fraud. Five other individuals associated with the alleged bribery scheme were charged with conspiring to violate the FCPA. The two companies at the heart of the allegations had raised funds from U.S. investors or had traded on the New York Stock Exchange during the alleged scheme.
Mr. Trump had objected to the FCPA during his first term as well.
“The President’s foreign policy authority is inextricably linked with the global economic competitiveness of American companies,” the order read, adding that American national security depended substantially on U.S. companies gaining strategic business advantages in areas such as critical minerals, deep-water ports and infrastructure assets. FCPA enforcement against American citizens and businesses has been “overexpansive” and “unpredictable”, the order said. The FCPA has been “stretched beyond proper bounds” and was harming U.S. interests, the order noted.
The President has signed around 80 executive orders since he returned to power last month.
“It’s going to mean a lot more business for America,” he told reporters on Monday (February 10, 2025) as he signed the order.
Published – February 11, 2025 10:45 pm IST
