US President Donald Trump issued an executive order on Monday, instructing the Justice Department to pause the enforcement of a law that bans US companies and foreign businesses from bribing foreign officials to secure business deals.
The order directs Attorney General Pam Bondi to suspend prosecutions under the Foreign Corrupt Practices Act (FCPA) until new guidelines are prepared.
According to a White House factsheet, US companies are "harmed by FCPA over-enforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field."
The FCPA, passed in 1977, bans Americans and certain foreign companies from bribing foreign officials. In 1998, it was expanded to include foreign entities involved in bribery in the US.
"It sounds good, but it hurts the country," Trump said of the FCPA, as he signed the executive order at the White House.
Trump stated that US anti-corruption laws are blocking deals because businesses "don't want to feel like every time they pick up the phone, they're going to jail."
