We invite you to read the column written by our Compliance Group Director, Yoab Bitran, on the DOJ’s new focus on FCPA enforcement against transnational criminal organizations.
The DOJ’s efforts are focused on money laundering and links to transnational criminal organizations, especially in Latin America.
What is the FCPA and why is it relevant to Latin America?
The Foreign Corrupt Practices Act (FCPA) was enacted in 1977 to punish companies and individuals who offer bribes to foreign officials to obtain or retain business.
The FCPA has been considered a pillar in the global fight against corruption, influencing similar regulations in the United Kingdom, the European Union and the Organization for Economic Cooperation and Development (OECD). Since its implementation, it has resulted in significant sanctions against multinational companies and has served as a benchmark for global compliance programs.
On February 10, 2025, President Donald Trump signed Executive Order 14209, which established a pause in the enforcement of the Foreign Corrupt Practices Act (FCPA). According to its own text, this measure sought to “review the scope of the FCPA and prevent its enforcement from adversely affecting U.S. economic competitiveness or being used disproportionately against U.S. companies.”
First, it provided for the suspension of the initiation of new investigations or legal actions under this law, unless the Attorney General expressly authorizes an exception. It also required a thorough review of ongoing cases to ensure that presidential foreign policy authority is safeguarded. Finally, the Executive Order established the need to issue new guidelines that prioritize U.S. strategic interests, strengthen its economic competitiveness vis-à-vis other nations, and ensure efficient use of public law enforcement resources.
This Executive Order was received with disappointment by the Latin American compliance community. The large number of cases in our region, particularly those stemming from the Odebrecht scandal and the growing international collaboration of prosecutorial bodies have been perceived as a fundamental factor for the advancement of compliance and corruption prevention.
DOJ’s new priorities in 2025
A few months later, on May 2, the Department of Justice (DOJ) issued a memorandum signed by Matthew R. Galeotti, head of the Criminal Division, which redefines criminal prosecution priorities in economic matters. The document highlights corporate fraud, money laundering and associated threats to the security of the United States as major focuses.
The memorandum anticipates a more strategic application of the FCPA with a focus on foreign companies, particularly conduct that directly affects the competitiveness of U.S. companies or poses a risk to their formal economy. It also prioritizes investigations of companies suspected of collaborating with or materially supporting international cartels and criminal organizations, particularly those recently classified as terrorists.
The memorandum confirms a shift in focus, in terms of anti-corruption, money laundering prevention and terrorist financing, which anticipates increased scrutiny by U.S. authorities of companies in Latin America.
Finally, on June 9, 2025, Assistant Attorney General Todd Blanche issued revised guidance on FCPA enforcement with new guidelines aimed at focusing investigations exclusively on conduct that truly affects U.S. national interests.
In line with the Trump administration’s hemispheric security policy, cases linked to transnational criminal organizations (TCOs), especially in Latin America, receive top priority. The guidance states that special attention will be given to conduct related to cartel or TCO operations, use of money laundering or shell companies, and bribery of state officials linked to these organizations.
In summary, although in general terms the loss of U.S. global leadership in the fight against corruption can be regretted, what is certain is that with respect to Latin America what is announced and envisaged is a change of focus, not a weakening, in the application of the FCPA.
Column written by:
Yoab Bitran | Director Compliance Group | ybitran@az.cl
