Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security
February 10, 2025
Action Summary
- Purpose and Policy: Reassesses FCPA enforcement, arguing that current practices overly constrain U.S. foreign policy and harm American economic competitiveness and national security.
- Review of FCPA Enforcement: Initiates a 180-day review (extendable by another 180 days) by the Attorney General to examine and adjust guidelines, ceasing new FCPA investigations unless exceptions are warranted.
- Guideline Updates: Mandates a detailed review of ongoing investigations and the issuance of revised policies to align enforcement with the President’s foreign policy prerogatives and economic interests.
- Restoration of Presidential Authority: Aims to eliminate excessive barriers to American commerce abroad, safeguarding the President’s Article II authority in foreign affairs.
- Legal Provisions: Includes severability and general provisions ensuring that existing authorities and administrative functions remain unaffected while clarifying that the order does not create enforceable rights.
Risks & Considerations
- The Executive Order to pause the enforcement of the Foreign Corrupt Practices Act (FCPA) could lead to increased risks of unethical business practices, as companies may perceive a temporary relaxation in compliance requirements. This could affect Vanderbilt University’s partnerships with corporations that may be involved in international business.
- There is a potential reputational risk for Vanderbilt if associated with entities that might exploit the pause in FCPA enforcement for unethical gains. The university must ensure that its collaborations and partnerships maintain high ethical standards.
- The order may impact research funding opportunities related to international business ethics and compliance, as the focus shifts towards promoting American economic competitiveness over strict adherence to anti-corruption measures.
- Vanderbilt’s Owen Graduate School of Management may need to adjust its curriculum to address changes in the regulatory landscape and prepare students for a business environment with potentially relaxed enforcement of anti-corruption laws.
Impacted Programs
- Owen Graduate School of Management may need to update its courses on international business and ethics to reflect the temporary changes in FCPA enforcement and prepare students for the evolving business landscape.
- Vanderbilt Law School could see increased interest in courses related to international law and business ethics, as students and faculty explore the implications of the Executive Order on global business practices.
- The Office of Research might need to reassess its partnerships and funding sources to ensure alignment with ethical standards and compliance with international regulations.
Financial Impact
- The pause in FCPA enforcement could lead to shifts in funding priorities, potentially affecting grants and research opportunities related to international business ethics and compliance.
- Vanderbilt University may need to invest in additional resources to monitor and ensure compliance with evolving international business regulations, particularly if the pause in enforcement leads to increased scrutiny of academic partnerships.
- There could be opportunities for Vanderbilt to engage in research and policy development related to the impact of relaxed FCPA enforcement on global business practices, potentially attracting new funding and collaboration opportunities.
Relevance Score: 3 (The order presents moderate risks involving compliance and ethics, requiring careful monitoring and potential adjustments in university programs and partnerships.)
Key Actions
- Vanderbilt’s Owen Graduate School of Management should consider developing courses or seminars on the implications of changes in the enforcement of the Foreign Corrupt Practices Act (FCPA). This could include exploring how these changes might affect global business strategies and compliance requirements for American companies operating abroad.
- The Office of Federal Relations should monitor updates from the Department of Justice regarding new guidelines or policies on FCPA enforcement. Understanding these changes will be crucial for advising university stakeholders on potential impacts to international collaborations and partnerships.
- Vanderbilt’s Law School could explore research opportunities on the legal and ethical implications of reduced FCPA enforcement. This research could contribute to broader discussions on balancing economic competitiveness with ethical business practices.
- The Center for International Business should assess how the pause in FCPA enforcement might influence international business opportunities and risks. This assessment can guide strategic decisions for expanding Vanderbilt’s global partnerships and initiatives.
Opportunities
- The executive order presents an opportunity for Vanderbilt’s Business and Law Schools to collaborate on interdisciplinary research and education initiatives focused on international business law and ethics. This collaboration could enhance Vanderbilt’s reputation as a leader in global business education.
- Vanderbilt can capitalize on the potential increase in international business activities by expanding its global network and partnerships. Engaging with international universities and businesses could provide new opportunities for research, student exchanges, and collaborative projects.
- The emphasis on American economic competitiveness offers an opportunity for Vanderbilt’s Economic Development Center to engage in policy analysis and advocacy. By providing evidence-based recommendations, the center can influence how these changes impact economic growth and development.
Relevance Score: 3 (The order requires some adjustments to processes or procedures, particularly in international business and legal education.)
Timeline for Implementation
- 180-day review period for FCPA guidelines and policies starting February 10, 2025.
- Optional extension: An additional 180 days may be added at the Attorney General’s discretion.
Relevance Score: 1
Impacted Government Organizations
- Department of Justice (Attorney General): The Attorney General is tasked with reviewing and modifying enforcement guidelines under the FCPA, making the Department of Justice a primary agency impacted by this order.
- Office of Management and Budget (OMB): The OMB’s role in overseeing budgetary, administrative, or legislative proposals remains intact, thereby including it in the scope of the order’s general provisions.
Relevance Score: 1 (Only 1 or 2 agencies are directly impacted by the order.)
Responsible Officials
- Attorney General – Responsible for reviewing FCPA enforcement guidelines, ceasing new investigations if applicable, and issuing updated enforcement policies as directed by the Executive Order.
Relevance Score: 5 (Directives affect a Cabinet-level official with broad national security and economic implications.)