Relief for Adani as Trump suspends enforcement of foreign corrupt practices law

United States President Donald J Trump on February 10 signed an executive order today suspending the enforcement of the Foreign Corrupt Practices Act (FCPA) of 1977 in a move to enhance American business competitiveness and national security..The move offers relief to Adani Group Chairperson Gautam Adani, who was charged under the FCPA by US authorities last year. In November 2024, the US Department of Justice (DoJ) indicted Adani, his nephew Sagar Adani and other senior executives for allegedly orchestrating a bribery scheme involving over $250 million in payments to Indian government officials to secure favourable solar energy contracts. The indictment includes charges of securities fraud, wire fraud and violations of the FCPA..The FCPA is a US law prohibiting bribery of foreign officials to obtain or retain business. Its anti-bribery provisions make such bribes illegal for US entities, even if conducted abroad, while its accounting provisions mandate accurate record-keeping and internal controls for publicly traded companies to prevent bribery. The FCPA's core purpose is to foster ethical international business practices and combat corruption.The executive order released by the US White House directs the Attorney General to pause all FCPA-related actions until revised enforcement guidelines are issued. Future investigations and enforcement actions will require approval from the Attorney General under the new framework, which aims to reduce regulatory burdens on US companies operating abroad..According to the White House, aggressive enforcement of the FCPA has put American businesses at a disadvantage by prohibiting them from engaging in practices common among international competitors. The administration argues that the law, initially designed to curb corporate bribery, has been overextended by regulators, hindering US firms in securing strategic assets such as deep-water ports and critical minerals.The executive order also mandates a review of past and ongoing FCPA cases to determine whether they align with the new enforcement priorities.