Justice Department Resumes Foreign-Bribery Investigations with Focus on U.S. Competitiveness & National Security

Key Takeaways

• Shift in DOJ Focus: The U.S. Department of Justice (DOJ) has resumed foreign-bribery investigations but with a targeted approach, prioritizing cases that align with American economic competitiveness and national security.
• Executive Order Impact: President Trump’s executive order from February 2025 directed a reevaluation of Foreign Corrupt Practices Act (FCPA) enforcement, leading to the closure of nearly half of ongoing FCPA cases and a shift toward major bribery schemes in critical industries like energy, defense, and those linked to organized crime.
• Strategic Enforcement: The DOJ will now focus on high-impact cases that involve significant bribery payments and activities tied to sectors essential to U.S. national security, such as energy, defense, and infrastructure, where U.S. businesses face unfair competition from foreign entities.
• International Cooperation: While reducing domestic overreach, the DOJ will continue collaborating with foreign regulators on cases that do not directly affect U.S. interests.
• Impact on Global Anti-Corruption: Critics warn that the new approach might reduce U.S. influence on global anti-corruption initiatives, while supporters argue it's a necessary adjustment to safeguard U.S. strategic and economic interests.

Deep Dive

The U.S. Department of Justice (DOJ) just announced that it will resume its foreign-bribery investigations, but with a narrowed focus aimed at protecting American businesses' ability to compete on the global stage and safeguarding national security. This decision follows a four-month review prompted by an executive order from President Trump, which had paused such investigations earlier this year.

Deputy Attorney General Todd Blanche made the announcement, according to the Wall Street Journal, revealing that nearly half of the ongoing Foreign Corrupt Practices Act (FCPA) cases would be closed to align with new enforcement guidelines. Under the revamped framework, investigations will prioritize cases involving substantial bribery payments, the corrupt activities of cartels, and those that impact key U.S. industries such as energy and defense.

"The Justice Department has overhauled FCPA enforcement to protect American businesses and sharpen our national security focus," Blanche said. "We’re ending abusive overreach and closing cases that never should’ve been opened."

The EO issued by President Trump asserted that the FCPA, enacted in 1977, had been "stretched beyond proper bounds" over the years, hindering U.S. foreign policy and economic interests. It emphasized that American national security is closely tied to the ability of U.S. companies to secure strategic business advantages in critical sectors like infrastructure and natural resources. The EO’s core argument was that overzealous enforcement of the FCPA, particularly against routine business practices abroad, was putting American firms at a competitive disadvantage.

"The President’s foreign policy authority is inextricably linked with the global economic competitiveness of American companies," the EO stated. "Excessive FCPA enforcement...actively harms American economic competitiveness and, therefore, national security."

Blanche’s remarks came shortly after a related announcement by Matthew R. Galeotti, Head of the DOJ's Criminal Division, who emphasized the department's renewed commitment to combating white-collar crime, including foreign bribery cases. In a speech at the American Conference Institute, Galeotti explained that the DOJ's new guidelines include factors such as whether misconduct deprives U.S. entities of fair access to competition, involves key infrastructure, or links to organized criminal operations.

“We will focus on conduct that genuinely impacts the United States or the American people,” Galeotti stated. “For cases that don’t implicate U.S. interests, we will work with foreign regulators to ensure that justice is served.”

The new guidelines also direct prosecutors to consider the severity of misconduct, specifically targeting large-scale bribery schemes that distort markets and undermine U.S. companies' ability to win business abroad. Notably, the DOJ’s review also identified cases where foreign officials or intermediaries engaged in corrupt acts with cartel ties, further complicating the enforcement landscape.

While the department intends to focus its resources on these priority cases, Galeotti made it clear that the DOJ would not hesitate to prosecute individuals or companies involved in serious white-collar crimes. He reaffirmed that the Criminal Division’s commitment to tackling corporate misconduct remains firm, pointing to efforts such as the Corporate Enforcement and Voluntary Self-Disclosure Policy, which incentivizes companies to come forward and report wrongdoing in exchange for leniency.

"The department is committed to swift, fair, and just enforcement. We will aggressively pursue those who victimize U.S. businesses and undermine the economy," Galeotti remarked, emphasizing the critical role that compliance professionals and corporate leaders play in rooting out misconduct.

This focus on strategic enforcement also reflects broader policy shifts within the DOJ’s white-collar crime agenda. Galeotti highlighted that the Criminal Division's priorities extend beyond FCPA violations to include areas like procurement fraud, healthcare fraud, and money laundering, all of which contribute to the erosion of U.S. prosperity.

The DOJ's move is expected to have significant ramifications for both U.S. companies and foreign firms operating in global markets. While some critics argue that narrowing the scope of FCPA enforcement could diminish global anti-corruption efforts, others see the shift as a necessary step to level the playing field for U.S. firms in an increasingly competitive international marketplace.

As the Justice Department continues to recalibrate its foreign-bribery enforcement strategy, officials have stressed that while the guidelines offer more clarity, they retain flexibility in responding to complex, cross-border criminal activities. The DOJ has vowed to remain vigilant in holding accountable those who exploit global markets to the detriment of U.S. interests.

While the pause and new approach to FCPA enforcement has been hailed by some as a necessary step to protect U.S. interests, it sparked significant controversy. Critics argue that the new approach diminishes the U.S.’s role in combating global corruption and undermine efforts to promote ethical business practices abroad. Supporters, however, contend that it is a needed recalibration to help American companies compete on a more level playing field.

The GRC Report is your premier destination for the latest in governance, risk, and compliance news. As your reliable source for comprehensive coverage, we ensure you stay informed and ready to navigate the dynamic landscape of GRC. Beyond being a news source, the GRC Report represents a thriving community of professionals who, like you, are dedicated to GRC excellence. Explore our insightful articles and breaking news, and actively participate in the conversation to enhance your GRC journey.