A significant decline in the enforcement of foreign bribery cases has been observed under the administration of President Donald Trump, according to a report by the Wall Street Journal. The report, published on New Year’s Eve, highlights a shift in priorities at the Department of Justice (DOJ) that has led to a marked reduction in the prosecution of white-collar financial crimes.
The focus on stimulating foreign investment to bolster the U.S. economy has prompted both the DOJ and the Securities and Exchange Commission (SEC) to limit their enforcement efforts regarding the Foreign Corrupt Practices Act (FCPA). This year, only six cases have been filed under the FCPA, a stark contrast to the annual average of 33 cases since 2015. The Wall Street Journal characterized this decline as enforcement actions having “fallen off a cliff.”
Shift in DOJ Priorities
The Trump administration‘s commitment to focusing on issues such as immigration enforcement and violent crime has resulted in a withdrawal from the complex investigations that were once a hallmark of the DOJ’s efforts against foreign bribery and public corruption. Former leaders of the department often cited these investigations as significant successes.
In light of these changes, President Trump has sought a six-month freeze on enforcement actions, arguing that such restrictions hinder U.S. companies operating in international markets. Consequently, DOJ officials have reportedly closed nearly half of their ongoing foreign-bribery investigations. Moreover, future cases are now intended to align with U.S. strategic interests, particularly those related to transnational drug cartels.
Impact on White-Collar Crime Prosecution
Current and former DOJ officials have indicated that the decline in white-collar crime enforcement can be partly attributed to the reassignment of prosecutors and investigators to other pressing law enforcement priorities within the government. This realignment has diminished the DOJ’s capacity to pursue investigations into foreign bribery and related offenses.
The implications of these changes are significant. With a reduced focus on foreign bribery, the integrity of international business practices may be compromised, potentially leading to an increase in corrupt activities that undermine fair competition. As the landscape of enforcement evolves, the extent of its impact on both U.S. businesses and foreign relations will remain to be seen.
The Wall Street Journal report sheds light on a critical area of law enforcement that is undergoing a notable transformation, one that could reshape how white-collar crime is addressed in the United States.
