But under US president Donald Trump, it may lose its bite, according to anti-corruption activists, Democrat lawmakers, and legal experts. At worst, some worry, he could try to repeal it altogether.
They have cause for their concern. Trump has dubbed the FCPA a “horrible law” that stifles American businesses trying to work abroad. “It puts us at a huge disadvantage,” he told CNBC in 2012. As president, he has killed a rule to crack down on foreign bribery by US energy companies, refused to release his tax returns, and canceled ethics training for White House staff.
Finally, Trump has nominated Jay Clayton, a Wall Street defense lawyer, to head the Securities and Exchange Commission. The SEC enforces the FCPA along with the Department of Justice (DoJ). In 2011 Clayton co-wrote a lengthy paper criticizing the law and its “zealous” enforcement.
It ensures executives aren’t paying bribes or doling out favors to government officials, and creates a culture of zero tolerance and leniency, he said. Every year, Microsoft does an internal audit of its business in corruption-prone countries, using the FCPA guidelines and principles, and while it means more paperwork, “you know there are double eyes on everything.”
What happens if the FCPA is weakened? Not much, at first, FCPA advocates say. Big multinationals already have strict anti-bribery procedures, and it’s not worth the reputational damage they’d suffer if they engage in bribery, Wrage argues. Plus, they risk falling foul of other countries’ anti-bribery laws, which many are enforcing thanks in no small part to the FCPA. Britain, in particular, launched 29 bribery investigations in 2016—second only to America’s 118—and earlier this year slapped Rolls Royce with £671 million in penalties.
It is the “at first” I worry about. Many behaviors urk me, but not much makes me more angry then being lied to or taken advantage of or being cheated. I hope we as a nation are not seen as doing these things either personally or in our businesses. I really don’t want Trump&Co to get rid of the FCPA as I understand it. And If I am wrong, for heaven’s sake, tell me how exactly.
FCPA is an impediment to trade and should be abolished. Such moralizing is a world class joke.
Bribery always has and always will exist. We call it by different names, e g. lobbying, donations, but it is still bribery.
But, I will agree with Donald Trump on one thing. This country is inundated with corruption, especially within the political class of this country. I would much rather we conquer that then concern ourselves with the corruption happening in other countries. Kind of like the pot calling the kettle black in my opinion.
A look at the Quartz website is somewhat troubling as well. I question what their motivations and true attitude towards Trump really are.
Bribery always has and always will exist. We call it by different names, e g. lobbying, donations, but it is still bribery.
Look at the USA. No country can run HUGE trade deficits and have almost nil import tariffs, which flies in the face of common sense and the will of the America people, without our own government being totally corrupt. To the core.