Trump Administration Curbs White-Collar Crime Investigations
NEWS & RESEARCH
The Trump Administration has suspended various investigations into foreign bribery, money laundering, and corruption while rolling back several Biden-era white-collar prosecutions, raising the specter of backdoor deals and special interest influence. Key actions include:
FCPA Pause: An executive order temporarily halted new investigations under the Foreign Corrupt Practices Act, which bars bribing foreign entities for business gain.
DOJ Policy Shift: A Department of Justice memo urged prosecutors to avoid "overreach" that might discourage innovation or business risk.
SOURCES: Wall Street Journal | Vox
ANALYSIS & OPINION
Experts argue these shifts signal a significant decline in accountability:
"Aggressive Retreat": Business law professor Will Thomas characterized the approach as a broad withdrawal from white-collar enforcement.
Tone from the Top: Former Anti-Corruption Coordinator Richard Nephew noted that presidential rhetoric influences how strictly laws are applied and how often entities risk engaging in bribery. He highlighted frequent allegations of corrupt practices involving the administration’s own business interests. Experts argue these shifts signal a significant decline in accountability.
SOURCES: Wall Street Journal | Just Security
HOW TO FIX IT
Federal action:
Legislative Action: Pass the FCPA Reinforcement Act to bolster the original 1977 law.
Oversight: Conduct federal investigations into the administration's de-prioritization of financial crime enforcement.
Legislation: S.4029 - A bill to reinforce the Foreign Corrupt Practices Act of 1977
