In 2012, compliance lawyer Alexandra Wrage appeared on CNBC’s “Squawk Box” to discuss the Foreign Corrupt Practices Act (FCPA) with then-president of the Trump Organization, Donald Trump, who criticized the law as hindering U.S. companies. Despite this, the Trump administration ultimately strengthened FCPA enforcement, doubling resources in the DOJ’s anti-corruption unit during his first term. However, concerns arise about the potential direction of corruption prosecutions in Trump’s second term, with fears that the FCPA could be weaponized for political purposes.
The passage of the Global Magnitsky Act, which allows for sanctions against foreign officials involved in human rights abuses, highlights the potential impact of U.S. laws on international corruption cases. Anti-corruption activist Bill Browder raised concerns that Trump’s second term may see inconsistent application of such laws, particularly when it comes to protecting political allies.
Former DOJ prosecutor Fry Wernick sees an opportunity for the U.S. to target adversarial nations with corruption charges as a complement to sanctions. This approach, he suggests, could align with an ‘America First’ foreign policy stance. The incoming administration’s choice of key leadership roles, including Sen. Marco Rubio as secretary of state and Matt Gaetz as attorney general, will likely shape the direction of corruption prosecutions in the coming years.
Ultimately, the approach to prosecuting corruption cases under the new administration remains uncertain, with questions about priorities, targets, and potential political motivations. The impact of these decisions will be significant in shaping U.S. foreign policy and efforts to combat global corruption.
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