New DOJ FCPA Guidelines: What Trade Companies Must Know to Stay Compliant and Competitive

What Trade Companies Must Know to Stay Compliant and Competitive

by Mark Jenkins

We’ll break down why investigating anti-corruption is necessary, the new guidelines, highlight red flags for fraud and corruption in trade operations, and offer practical prevention strategies to keep your business resilient.

• Regulatory Risk Remains High: Despite narrowed enforcement focus, the DOJ’s 2025 guidelines clearly prioritize cases with national security implications or economic harm to U.S. interests—putting companies at significant risk if controls are weak.
• Reputational Damage: Even a single incident of bribery or corruption can result in severe reputational harm, loss of business opportunities, and diminished stakeholder trust.
• Whistleblower Trends: The SEC has continued to receive between 10,000 and 12,000 whistleblower reports per year for the last several years. The DOJ has recently (2024) mirrored the SEC program. Whistleblower reports factor in on the number of cases the DOJ investigates.
• Enforcement is More Targeted, Not Less: Aggressive prosecution continues where links exist to transnational criminal organizations, harm to U.S. business interests, or national security threats.
• Potential for Severe Penalties: Failure to self-investigate and remediate may result in enhanced scrutiny, larger penalties, and loss of cooperation credit.
• Individual Accountability: The DOJ emphasizes prosecuting responsible individuals, heightening personal risk for executives and compliance professionals.

On June 9, 2025, the U.S. Department of Justice (DOJ) released updated guidelines for investigation and enforcement under the FCPA. Following the temporary pause of certain enforcement actions via President Trump’s Executive Order on February 10, 2025, the new framework signals a strategic shift—prioritizing national security, economic fairness, and targeted enforcement.

• Links to Transnational Criminal Organizations (TCOs):
  Bribery connected to groups involved in arms, drugs, or human trafficking will face aggressive prosecution—especially relevant to companies working in Latin America or Southeast Asia.
• U.S. Business Harm:
  Loss of fair bidding opportunities to foreign bribes is now a high enforcement priority—even where the wrongdoer is not American. The Foreign Extortion Prevention Act (FEPA) is increasingly invoked to target demand-side bribery.
• National Security:
  Deals involving defense, infrastructure, or sensitive technology with corrupt components receive heightened DOJ scrutiny.
• Intent and Scale:
  Emphasis is on prosecuting serious, intentional misconduct (such as six-figure bribes or systemic fraud), rather than minor gifts or business courtesies. Individual accountability is now a DOJ focus.
• Compliance Standards Still Matter:
  While there are no explicit new compliance program requirements, the DOJ affirms that robust controls and risk-based compliance remain essential to reduce penalties.

International trade often involves high-risk environments, such as emerging markets or government contracts, where corruption can manifest subtly. Drawing from our investigations and advisory experience, here are common red flags to watch for:

• Unusual payment arrangements (large cash, offshore entities, vague third parties).
• Lavish gifts or hospitality given to foreign officials.
• Irregularities in bidding processes, such as unexplained competitor dropouts.
• Opaque intermediaries, often with government ties.
• Internal anomalies: inconsistent expenses or resistance to transparency.

To align with the new guidelines and reduce exposure, trade companies should proactively enhance their anti-corruption frameworks. Here’s a step-by-step approach based on best practices:

1. Reassess Risk:
   Focus on TCO-linked markets, national security sectors, and competitive bidding environments.
2. Vet Third Parties Rigorously:
   Enforce tiered due diligence, especially with high-risk intermediaries.
3. Upgrade Training:
   Offer customized FCPA/FEPA training with real-world case studies.
4. Create a Speak-Up Culture:
   Ensure confidential whistleblower channels and prompt internal investigations.
5. Audit Regularly:
   Maintain proactive customs and forensic audit routines to minimize risk.

By adopting these strategies, companies not only comply with the updated guidelines but also gain a competitive edge through ethical operations.