On June 9, 2025, Deputy Attorney General Todd Blanche issued a memorandum (the DAG memorandum) updating the Department of Justice's (DOJ) enforcement guidelines for the Foreign Corrupt Practices Act (FCPA) in accordance with Executive Order 14209 (Order) that President Trump signed on February 10, 2025. The Order temporarily suspended new FCPA investigations to reduce regulatory burdens on American businesses, with specific exceptions allowed by the Attorney General. The DAG memorandum articulates the DOJ's guidelines pursuant to the Order, marking a significant shift in FCPA enforcement that emphasizes both national security and the protection of U.S. business interests abroad.
Strategic Enforcement Priorities
The guidelines outlined in the DAG memorandum indicate a strategic shift in FCPA enforcement, prioritizing cases with considerable implications for U.S. strategic interests. This targeted approach examines individual misconduct with corrupt intent instead of routine business practices or corporate structures, aiming to enhance efficiency and direct resources toward substantial threats to U.S. interests.
Pausing FCPA Enforcement
Executive Order 14209 called for a temporary halt to new FCPA investigations or enforcement actions, allowing exceptions by the Attorney General. It instructed the DOJ to review existing cases and update policies to better serve American interests and uphold presidential foreign policy prerogatives. This pause offered the DOJ a chance to reassess its strategy, preventing excessive enforcement and aligning with national economic and security priorities.
Key Factors in Enforcement Decisions
The DAG memorandum identifies several key factors that the DOJ will consider when deciding whether to pursue enforcement action:
- Targeting Criminal Networks: A primary focus is dismantling financial mechanisms associated with cartels and transnational criminal organizations (TCOs), particularly those involved in foreign bribery. By prosecuting individuals and entities linked to these networks, the DOJ aims to mitigate threats to international stability and U.S. national security. This strategy underscores this administration's commitment to addressing the root causes of corruption and its global impact.
- Safeguarding U.S. Business Competitiveness: The guidelines stress the importance of protecting fair competition for U.S. companies, which the DAG stated is vital for both national security and economic prosperity. Enforcement efforts will concentrate on misconduct that adversely affects U.S. businesses' ability to compete fairly in international markets, to promote a level playing field for American companies abroad.
- Enhancing National Security: The enforcement strategy emphasizes addressing bribery in sectors critical to national security, such as minerals, ports, and infrastructure. Targeting corrupt practices in these areas aims to secure strategic advantages and protect U.S. interests. This focus reflects the broader goal of safeguarding essential resources and infrastructure.
- Prioritizing Serious Misconduct: Prosecutors are encouraged to differentiate between minor facilitation payments and substantial corrupt activities. The directive targets significant misconduct with evident indicators of corruption, ensuring enforcement actions focus on genuinely harmful practices.
Galeotti's Address and Its Implications
Head of the Criminal Division, Matthew Galeotti, affirmed the DAG memorandum's strategic direction on June 10, 2025, when speaking to the American Conference Institute. Galeotti emphasized the DOJ's commitment to combating white collar crime. He further noted that the DOJ will prioritize FCPA enforcement where the conduct "genuinely impacts the United States or the American people." At the same time, Galeotti noted that where the conduct does not implicate U.S. interests, the DOJ would defer to foreign enforcers and/or the appropriate regulators. However, the DOJ will not hesitate to provide those entities with the requisite support.
Corporate Enforcement and Self-Disclosure
During his address, Galeotti reiterated the DOJ's Corporate Enforcement and Voluntary Self-Disclosure Policy, which incentivizes companies to report misconduct. Firms that engage in voluntary self-disclosure, cooperation, and remediation may receive benefits, including declinations of prosecution. He explained the updated strategy for corporate monitorships, focusing on efficient compliance and accountability measures that are consistent with the DOJ's priorities.
These recent policies have resulted in a noticeable increase in voluntary self-disclosures and substantial whistleblower tips, which Galeotti considers early indicators of the program's success. Galeotti further emphasized that companies should self-report, cooperate, and remediate to take advantage of the Division's policies, cautioning that noncompliance will lead to swift and assertive legal actions. The underlying message is clear: companies must act responsibly and proactively to align with DOJ enforcement priorities.
A New Focus
The DAG memorandum and Galeotti's address underscore a pivotal focus on safeguarding U.S. strategic and economic interests through targeted FCPA enforcement. While the guidelines do not explicitly single out foreign entities with substantial U.S. interests as probable targets, they imply that the DOJ will engage in heightened scrutiny of such entities. Particularly, enforcement will concentrate on those whose activities undermine the competitiveness of U.S. businesses or pose threats linked to transnational criminal networks. This implies that foreign companies engaged in conduct that jeopardizes U.S. interests—such as unfair competitive practices or involvement in criminal activities—could face investigation if they have sufficient ties to confer jurisdiction under U.S. law.
To navigate this evolving landscape, companies with U.S. operations should proactively bolster compliance programs and establish robust mechanisms for internal reporting and cooperation with enforcement authorities. By aligning with U.S. enforcement priorities, companies can mitigate potential legal risks, benefit from reduced penalties, and foster a culture of corporate accountability.
In conclusion, the updated FCPA enforcement guidelines emphasize national security and the protection of American business interests, directing resources toward impactful cases and fostering international cooperation. Companies are advised to strengthen compliance measures and ensure proactive engagement with enforcement strategies, thereby supporting fair competition and enhancing strategic security objectives.
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