DOJ Refocuses FCPA Enforcement: Implications for Due Diligence & Reputational Risk

The US Department of Justice’s latest Foreign Corrupt Practices Act (FCPA) guidance, released in June 2025, marks a notable shift in anti-corruption enforcement priorities. Rather than dismantling FCPA enforcement – a fear some had when a 180-day pause was ordered earlier in the year – the DOJ has refocused its approach to align with “America-First” priorities, placing US national interests and high-impact misconduct at the forefront. This updated guidance clarifies which red flags matter most to prosecutors within the Trump administration and underscores how companies should tailor their due diligence to meet the DOJ’s expectations.

A Shift to US Interests and Serious Misconduct

Deputy Attorney General Todd Blanche’s memorandum unveiled the Guidelines for FCPA Investigations and Enforcement, fulfilling a directive from President Trump’s February 2025 executive order pausing FCPA cases pending new guidance. The message within the new memorandum is clear: FCPA enforcement will continue under the Trump Administration, but with a more targeted focus on cases that “directly undermine US national interests”. In practice, this means prosecutors are directed to limit undue burdens on American businesses abroad and concentrate on bribery schemes that pose strategic harm to the US.

Under the updated policy, DOJ attorneys must evaluate a set of non-exhaustive factors before pursuing a case. These include whether alleged bribery involves drug cartels or transnational criminal organizations (TCOs) – for example, using cartel-linked money launderers or shell companies, or paying off officials tied to organized crime. They also consider if the conduct harmed a specific US company’s ability to compete, if it threatens US national security (such as corruption in defense or critical infrastructure sectors), or if the misconduct shows egregious intent – eg large bribes and elaborate concealment, as opposed to minor “grease payments” or customary gifts. Instead, resources are channeled toward blatant bribery schemes with clear criminal intent.

Another cornerstone of the guidance is its focus on individual wrongdoers. DOJ officials have signaled that prosecutors should “focus on cases in which individuals have engaged in criminal misconduct and not attribute nonspecific malfeasance to corporate structures”. This reflects a wariness of blaming an entire company for a few rogue employees absent evidence of a broader corporate conspiracy. It dovetails with procedural changes centralizing oversight of FCPA cases: new investigations now require approval from the top of the DOJ’s Criminal Division, aiming to ensure only the most warranted cases move forward.

In addition, Matthew Galeotti, head of the DOJ Criminal Division, emphasized that the “through-line” of the new guidelines is vindicating US interests, and “it is not about the nationality of the subject or where the company is headquartered”. In other words, any company (US or foreign) can be in DOJ’s crosshairs if its conduct “genuinely impacts the United States or the American people”. Conversely, if an offense doesn’t implicate US interests, the DOJ may defer to foreign authorities, with Galeotti noting the Department “won’t hesitate” to let capable counterparts take the lead in such cases (while offering US assistance as needed).

Implications for Anti-Corruption Due Diligence

For businesses, this realignment of enforcement priorities sends a strong signal. The FCPA program is becoming both more selective and more aggressive: it will home in on high-priority threats and every available tool (including new laws like the Foreign Extortion Prevention Act) when American interests are at stake.  

The updated guidance has immediate practical relevance for anti-corruption due diligence. Reputational due diligence firms and investigative teams will need to adapt their methodologies to these enforcement priorities, ensuring deeper scrutiny where it counts most and thorough documentation of their findings.

For instance, as we detailed previously, the DOJ’s cartel-centric approach explicitly calls out transnational criminal organizations (TCOs), which means companies operating in or dealing with certain regions face heightened FCPA exposure. In practice, that means elevating these jurisdictions in internal risk rankings and conducting enhanced due diligence.

In sum, the DOJ’s June 2025 FCPA guidance clarifies where enforcement firepower will be directed – toward corruption that undercuts USinterests, national security, and fair markets – and it implicitly defines what compliance best practices should prioritize.