Trump relaxes the enforcement of US laws that prohibit bribery by foreign officials

Donald Trump, the U.S. president, signed an executive order on Monday directing that the Justice Department halt prosecutions against Americans accused of bribing officials of foreign governments in order to gain or retain business within their countries.

Trump's order suspends the enforcement of the Foreign Corrupt Practices Act, which has been around for nearly 50 years. Pam Bondi is directed to review past and current actions related to this law and to prepare new guidelines.

In 1977, the law was passed prohibiting companies operating in the United States to bribe foreign officials. It has evolved into a guideline for American companies operating overseas.

Trump told reporters that the new order would mean more business for America while signing it in the Oval Office Monday.

Trump wanted to abolish the FCPA in his first term as president. He called it "a horrible law" and claimed that "the world laughs at us" because we enforce it.

Transparency International, a watchdog for anti-corruption, said that the FCPA has made the United States an international leader in combating corruption.

Gary Kalman said that Trump's executive orders "diminishes – and could pave a way for completely eliminating – the crown jewel in U.S. fight against global corruption," in a press release.

According to a White House factsheet, the law reduces American company's competitiveness.

The fact sheet stated that "U.S. firms are hurt by over-enforcement of the FCPA because they are forbidden from engaging in common practices among international competitors creating an unfair playing field."

The factsheet said that Trump's directive requires "revised and reasonable enforcement guidelines" by the Justice Department, which will not hinder American companies competing abroad.

Goldman Sachs and Glencore are among the multinational companies that have been under scrutiny by the Justice Department over their compliance with the law.

The White House fact sheet stated that by 2024 the Justice Department, Securities Exchange Commission, and other agencies would have filed 26 FCPA enforcement actions. At least 31 companies will be under investigation at the end of the year. Steve Holland, Nandita BOSE and Trevor Hunnicutt reported from Washington. Additional reporting was by Trevor Hunnicutt and Michael Perry in Washington.

(source: Reuters)