On June 9, 2025, the United States Department of Justice’s (DOJ) Deputy Attorney General, Todd Blanche, released new guidance regarding FCPA investigations and enforcement by the department’s Criminal Division.
The guidance reflects a consistent “America-First” approach, continuing the Trump administration’s pause on FCPA enforcement by introducing additional guidelines designed to “limit undue burdens on American companies operating abroad” and focusing enforcement on conduct that undermines U.S. national interests. In addition, the memo provides more detailed information on how enforcement efforts will be prioritized moving forward.
Key Takeaways from the Guidelines:
1. Continued Focus on Cartels and Transnational Criminal Organizations (TCOs):
The DOJ will maintain its emphasis on the “total elimination” of cartels and TCOs. In addition to investigating bribery that facilitates these organizations, the DOJ will also prioritize “dismantling the financial mechanisms and shell companies used by criminal networks.” This raises the expectations for transaction monitoring by financial institutions and Money Service Businesses (MSBs). Specifically, the memo instructs DOJ prosecutors to determine whether the alleged conduct in cases they pursue:
- Is associated with the criminal operations of a cartel or TCO;
- Utilizes shell companies or money launderers known to support such organizations; or
- Is linked to foreign officials or employees of state-owned entities who have received bribes from cartels or TCOs.
2. Safeguarding Fair Opportunities for U.S. Corporations:
The DOJ aims to protect U.S. companies from corrupt foreign competitors by identifying cases where alleged misconduct:
- Deprived specific and identifiable entities of fair access to compete; or
- Resulted in economic injury to American companies or individuals.
3. Advancing U.S. National Security:
There will be a particular focus on bribery of corrupt foreign officials that may threaten key minerals, deep-water ports, critical infrastructure assets, and the defense industry as a whole.
4. Prioritizing Serious Misconduct:
The DOJ will prioritize “serious misconduct” and will not penalize Americans for routine or facilitation payments in jurisdictions where such payments are permitted.
Furthermore, the prosecution of FCPA cases will now focus on individuals rather than corporate entities, making the process less disruptive for companies. All currently active FCPA cases are centered on individuals responsible for the violations. Additionally, each new case must be escalated to senior DOJ officials for approval and consideration. The DOJ aims to ensure that FCPA enforcement is both expeditious and minimally disruptive to U.S. companies.
Lastly, the new guidance makes notable reference to the Foreign Extortion Prevention Act (FEPA), indicating that prosecutors will consider whether U.S. companies have been harmed by foreign officials demanding bribes to secure contracts.
What Does This Mean for Your Company?
Given the current administration’s focus on Foreign Terrorist Organizations (FTOs) and Transnational Criminal Organizations (TCOs), companies now face increased legal risk of inadvertently providing “material support” to these groups. The definition of material support is broad, encompassing “any property, tangible or intangible, or service,” including currency or monetary instruments, financial services, lodging, training, expert advice or assistance, communications equipment, facilities, personnel, or transportation. Importantly, companies do not need to be directly complicit in making payments to such organizations; liability can arise simply from having knowledge that payments are being made to entities designated as FTOs. This places additional strain on existing compliance programs and controls, requiring companies to ensure they can appropriately capture this knowledge and prevent such transactions from occurring.
The guidance confirms that, beyond the FCPA pause of February 2025, enforcement will not disappear but will become more targeted in support of U.S. companies and national interests. With a focus on national resources, security, and TCOs, certain industries will be more heavily impacted and should consider the following actions:
- Reassess Your Company’s Risk Profile:
- Identify whether your organization operates in regions known for cartel or TCO activity, and reassess your risk exposure accordingly.
- Conduct a Risk Assessment:
- Evaluate risks based on your company’s geographic footprint and operational activities.
- Review International Procurement and Bidding Processes:
- Examine your escalation procedures when red flags arise, especially if requests for intermediaries or consultants are made in high-risk territories.
- Engage with Security Teams:
- Collaborate with your company’s security teams, who are often most knowledgeable about physical security in your areas of operation and transport corridors. Including them in the risk assessment process is essential for employee safety and for determining when heightened security measures are necessary.
- Evaluate Treasury and Payment Processing Controls:
- Assess controls related to payments that could inadvertently involve unknown TCOs or cartels.
- Strengthen Third-Party Onboarding and KYC Processes:
- Ensure your onboarding process includes robust Know Your Customer (KYC) procedures. Cartels and TCOs often operate through seemingly legitimate businesses and may require you to use their services if you operate in their territories. Understanding beneficial ownership is critical.
- Test and Update Whistleblower Mechanisms:
- Ensure your whistleblower system addresses both safety and compliance concerns associated with operating in cartel or TCO territories. Update training for employees in high-risk areas and review internal escalation protocols to ensure prompt notification and response.
How BDO Can Help
BDO understands Anti-Bribery and Anti-Corruption (ABAC) regulatory compliance. In today’s rapidly evolving regulatory and enforcement landscape, a robust compliance program is essential to mitigate risk and reduce the likelihood of non-compliance. BDO’s ABAC, forensic accounting, and compliance professionals help organizations evaluate their ABAC compliance programs against current U.S. and global standards, providing tailored solutions to address emerging regulatory risks, including:
- Compliance risk assessments
- Compliance program assessments
- Compliance due diligence in acquisitions
- Outsourced compliance and investigations support
- Development and review of policies, procedures, and training
- Third-party screening and due diligence
Navigating vastly different regulatory environments requires compliance leaders to uphold the highest global standards while managing varying degrees of risk and enforcement. Recent changes may create compliance imbalances within organizations. Understanding how to adapt and pivot will be essential to operating safely, efficiently, and competitively.
If you’re looking to strengthen your organization’s anti-bribery and anti-corruption compliance program, BDO is here to help. Our experienced ABAC, forensic accounting, and compliance professionals can provide tailored solutions to address your unique regulatory challenges. Contact us today to learn how we can support your compliance needs and help your organization operate safely, efficiently, and competitively in a complex global environment.