Bondi Pivots Justice Department’s Stance on White Collar Under Trump
The Justice Department is scaling back its enforcement of laws governing foreign lobbying transparency and foreign bribery, according to a memorandum issued by Attorney General Pam Bondi. The shift signals a narrowing of the Foreign Corrupt Practices Act (FCPA) enforcement scope, moving away from traditional corporate bribery cases and toward investigations tied to transnational criminal organizations.
In a memorandum obtained by Bloomberg Law, Bondi outlined that the Criminal Division’s FCPA unit will now prioritize cases where foreign bribery facilitates crimes such as human smuggling, drug trafficking, and firearms smuggling. This marks a significant pivot from the broad enforcement efforts of past administrations, which aggressively pursued corporate misconduct under the FCPA regardless of its ties to organized crime.
The decision to scale back on white-collar FCPA enforcement is expected to have far-reaching implications. Historically, the FCPA has been a critical tool in deterring corporate bribery of foreign officials, ensuring a level playing field for businesses operating globally. By shifting resources away from traditional corporate cases, the Justice Department may be signaling a reduced appetite for holding multinational corporations accountable for illicit payments made to secure business advantages.
Pam Bondi’s memo explicitly stated that FCPA prosecutors will now "shift focus away from investigations and cases that do not have such a connection” to transnational crime, reinforcing the new approach. This policy shift has drawn immediate scrutiny from legal experts and corporate compliance professionals who warn that deprioritizing traditional FCPA enforcement could embolden companies to engage in unethical business practices abroad with less fear of prosecution.
While the Justice Department’s emphasis on tackling bribery linked to criminal enterprises is undoubtedly important, critics argue that the move represents a rollback of corporate accountability. The FCPA has long served as a deterrent against global corruption, and its enforcement has led to record-breaking settlements and increased corporate compliance measures. By deprioritizing cases that lack an explicit connection to transnational crime, the Justice Department may be allowing significant instances of corporate bribery to go unchecked.
Some speculate that this policy shift reflects broader trends within the Bondi-led Justice Department, which has faced criticism for adopting a more lenient stance on white-collar crime. This departure from aggressive FCPA enforcement aligns with concerns that regulatory oversight of corporate misconduct is being weakened under the current administration.
Ultimately, the impact of this change will depend on how it is implemented in practice. If the Justice Department continues to pursue high-profile FCPA cases that threaten economic integrity, the shift may be seen as a recalibration rather than a retreat. However, if corporate bribery cases unrelated to transnational crime are ignored, businesses operating abroad may take the policy as a green light to engage in corrupt practices with reduced fear of legal repercussions.
As companies assess the implications of this enforcement shift, legal and compliance teams should remain vigilant. The FCPA remains law, and regulatory scrutiny—both in the U.S. and internationally—continues to evolve. Businesses should ensure they maintain robust anti-corruption compliance programs despite any perceived softening of enforcement priorities, as private litigants and international regulators may still hold them accountable where the Justice Department does not.
The real question moving forward is whether this pivot will erode the deterrent effect of the FCPA or simply refine its application. Either way, Bondi’s shift in enforcement priorities represents a notable departure from past Justice Department policy, one that will undoubtedly shape the future of corporate compliance and anti-bribery enforcement in the United States.
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