U.S. Justice Department revises foreign bribery enforcement approach
n a detailed memo, Deputy Attorney General Todd Blanche outlined that the new approach will concentrate on misconduct that undermines U.S. companies’ ability to compete with foreign rivals, involves critical infrastructure, and is linked to cartel operations or transnational criminal organizations.
The U.S. Justice Department is set to relaunch enforcement of the longstanding law against foreign bribery, but with a more focused strategy aimed at reducing the burden on U.S. businesses, according to a memo and statements by senior officials.
In a detailed memo, Deputy Attorney General Todd Blanche outlined that the new approach will concentrate on misconduct that undermines U.S. companies’ ability to compete with foreign rivals, involves critical infrastructure, and is linked to cartel operations or transnational criminal organizations.
Matthew Galeotti, the head of the Justice Department’s criminal division, emphasized that the primary objective of these new guidelines is to protect U.S. interests. "The through line in these guidelines is that they require the vindication of U.S. interests," Galeotti stated during an anti-corruption event in New York on Tuesday.
The 1977 Foreign Corrupt Practices Act (FCPA), which prohibits U.S. companies from bribing foreign officials, has been a key instrument in the government’s anti-corruption efforts. However, following a review ordered by former President Donald Trump, the unit responsible for enforcing the FCPA has seen a reduction in staff. As a result, Blanche’s memo outlines that all new investigations under the FCPA will require approval from top department officials.
In the wake of this reevaluation, the Justice Department has also decided to close certain pending FCPA cases. Galeotti reaffirmed that combating white-collar and corporate crime remains a crucial focus of the criminal division.
Additionally, the department is revising its approach to corporate monitorships. Galeotti indicated that the Justice Department will refrain from prosecuting companies that voluntarily report issues, cooperate with investigations, and take steps to address their misconduct. As part of its policy shift, the department is also conducting a review of the corporate monitorship process and has opted to maintain some while ending others. Galeotti clarified that monitors are meant to be a "temporary bridge" to help companies resolve compliance issues.
