Trump Pauses Enforcement of Law Banning Foreign Bribery

The Foreign Corrupt Practices Act makes it illegal for companies that operate in the United States to pay foreign government officials to secure or keep business deals.

President Trump on Monday ordered a pause in the enforcement of a federal law aimed at curbing corruption in multinational companies, saying it creates an uneven playing field for American firms.

The law, the Foreign Corrupt Practices Act, was enacted in 1977 and makes it illegal for companies that operate in the United States to pay foreign government officials to secure business deals. Federal authorities have used the law to crack down on bribery, especially in countries where it is a common business practice.

Mr. Trump has objected to the law, which has led to charges against some of the world’s largest companies. In November, U.S. prosecutors accused Gautam Adani, the Indian tycoon, of bribing Indian officials and charged him with fraud. His company has called those claims “baseless.” In 2020, Goldman Sachs agreed to pay more than $2.9 billion to settle charges that employees at its Malaysian subsidiary had paid $1 billion in bribes to foreign officials.

The law has been “abused in a manner that harms the interests of the United States,” Mr. Trump’s executive order said, adding that its enforcement was impeding foreign policy objectives.

The order bars federal authorities from starting any new investigations under the act or enforcing new actions for 180 days. The administration will also review existing investigations launched under the act, it said, to “restore proper bounds” on the law.

The order directs the attorney general to issue new guidance on how to enforce the act “that promotes American competitiveness and efficient use of federal law enforcement resources.”