New U.S. FCPA Guidelines: What European Companies Need to Know

The original post can be found here.

When President Trump took office in January 2025, one of his first, and already expected, measures was to suspend enforcement of the Foreign Corrupt Practices Act (FCPA). On February 10, through an executive order, he paused all new U.S. Department of Justice (DOJ) investigations for 180 days, arguing the law placed unfair burdens on American businesses. Recently, on June 10, 2025 the DOJ has now released new enforcement guidelines, narrowing FCPA prosecutions to only the most serious cases, those involving cartels, national security threats, or direct harm to U.S. interests.

While these changes were framed as a move to protect U.S. companies from excessive regulatory burdens, their implications extend well beyond U.S. borders – including European companies. Because under FCPA, any ties to U.S. financial systems, stock markets, or business involving U.S. interests may bring a company within the FCPA’s extraterritorial scope, regardless of where it is based.

What changed?

The DOJ’s new FCPA Guidelines reflect a major shift in how the U.S. intends to enforce anti-bribery laws abroad. Key changes include:

• Targeting Cartels and Transnational Criminal Organizations (TCOs): The DOJ prioritizes FCPA cases linked to cartels or TCOs, even indirectly – such as through shared money launderers or bribed officials. Latin America, especially Mexico, will likely see increased enforcement due to these connections and regional ties to the U.S. financial system.
• Focus on Critical Infrastructure: The DOJ prioritizes FCPA cases involving defense, intelligence, and critical infrastructure, viewing corruption in these sectors as a threat to U.S. national security.
• Reduced Business Disruption for U.S. Companies: The DOJ aims to focus on foreign conduct harming U.S. interests and seeks to minimize disruptions by acting quickly in investigations involving U.S. businesses.
• Individual Accountability: Prosecutors are directed to focus on the specific criminal conduct of individuals, avoiding broad attributions of blame to corporate entities.
• Senior-Level Authorisation Required: All new FCPA cases must be approved by senior DOJ officials, ensuring alignment with policy priorities and consistent enforcement.
• Focus on Serious Misconduct: Enforcement will concentrate on substantial bribes and serious offenses like concealment, fraud, and obstruction.
• Deference to Foreign Authorities: If capable and willing, foreign law enforcement agencies may take the lead in prosecuting cases that don’t strongly implicate U.S. interests.

Why the New Guidelines also matter for European Businesses

Though these guidelines may seem U.S.-focused at first glance, European companies should not underestimate their potential impact, if FCPA can apply to them:

• U.S. Jurisdiction Still Applies: The DOJ’s focus is on cases harming U.S. interests – but its authority over non-U.S. companies remains if FCPA applies. A foreign company not listed on a U.S. exchange can fall under FCPA regulation if it has a U.S. subsidiary, employs U.S. citizens, acts as an agent for a U.S. entity, uses the U.S. financial system (e.g., USD transactions or servers), or partners with U.S. companies. Even minimal connections to the U.S., such as dollar wire transfers or email communications routed through U.S. servers, can trigger FCPA jurisdiction.
• Exposure in High-Risk Regions: DOJ scrutiny is rising in cartel-linked regions like Latin America. Ties to corrupt officials or intermediaries can expose your company—no matter where you operate.
• Defense and Infrastructure in the Spotlight: European firms in defense, intelligence, or critical infrastructure – especially when working with U.S. partners – can expect greater attention under the new enforcement priorities.
• Global Cooperation Matters: The DOJ may defer to non-U.S. authorities – if enforcement is credible and U.S. interests aren’t directly involved. Strong local compliance of European companies and regulator cooperation are essential to reduce U.S. exposure.
• Individual Accountability: The DOJ’s focus on personal liability means executives and employees – not just companies – can face serious consequences.
• Reduced Tolerance for Concealment and Fraud: For European companies, this means higher compliance standards—transparency, strong controls, and proactive risk assessments are essential to avoid enforcement action.

Strategic Takeaways for European Companies

• Don’t assume immunity: U.S. enforcement may be narrower, but European companies can still be targets – especially if U.S. interests are affected.
• Update Compliance Risk Assessments: Regular Compliance risk assessments are an essential part of a robust Compliance Management System (CMS). Reassess your risks with regard to bribery and corruption to make sure your CMS is up to date.
• Strengthen your CMS: European companies with ties to the U.S. or operating in high-risk sectors like defense or infrastructure should review their CMS to make sure that risks are addressed in an appropriate manner. Policies and processes, regular trainings, protecting whistleblowers, and robust controls remain key.

Looking to evaluate your FCPA risk or enhancing your CMS? Don’t hesitate to get in touch with me: [email protected]e