FCPA Enforcement Under the New Administration: What Whistleblowers Need to Know

What happens overseas doesn’t always stay overseas, instead it could make it into the SEC’s files and whistleblowers could receive significant awards. When it comes to corporate corruption, one law has long defined America’s global stance: the Foreign Corrupt Practices Act, otherwise known as the FCPA. But under the current administration, enforcement priorities are shifting and those changes could alter how, when, and whether cases are brought.

Today, I’ll unpack what’s really happening behind the headlines, what kinds of FCPA cases are still likely to be prosecuted, and how whistleblowers can still bring those cases through the SEC whistleblower program even when political winds change.

Let’s start with how this looks in practice. Corporate bribery rarely happens in a smoky backroom with a big cigar and a bag of cash. It’s subtler, more sophisticated, and usually done by professionals who think they’re being clever such as executives, regional managers, or third-party “consultants” whose real job is to open doors with foreign officials.

The motive is almost always the same: to win or keep business in places where access to government contracts, permits, or licenses depends on influence rather than merit.
Sometimes it’s to secure a major infrastructure project or defense sale. Sometimes it’s to push a product through customs, or to make sure a competitor’s bid quietly disappears, which could have antitrust implications as well.

To hide it, companies falsify their ledgers. They might call a bribe a “consulting fee,” a “marketing allowance,” or a “facilitation payment.” These transactions are often routed through shell companies or regional distributors. Layers that give the illusion of distance between the money and the official.

If you work inside a company, the red flags often hide in plain sight.
Look for consulting payments, agent fees, or marketing reimbursements that make little commercial sense, especially to intermediaries in high-risk jurisdictions.
A common technique is to book a bribe as a “service fee,” “local facilitation expense,” or “commission adjustment,” with no backup documentation of real work performed.

Sometimes the ledger will show round-number transfers to third-party vendors who aren’t on any approved vendor list, or invoices describing vague tasks like “market development” or “government relations.”
Watch for duplicate invoices, split payments across subsidiaries, or entries coded to “miscellaneous” or “special projects.”
Internal audit or compliance teams may even be told to ignore certain “legacy accounts” or “strategic partners.” Those are signs the books are being massaged to hide something improper. The falsification isn’t always overt, it’s in classification and concealment, shifting improper payments into categories that look legitimate when auditors or the SEC review consolidated filings.

That’s why FCPA enforcement and whistleblowers who can spot these schemes remain so vital.

What is covered under the FCPA?

The FCPA was passed in 1977 to make one thing clear: You can’t bribe foreign officials to win business.

It has two key pillars:

1. Anti-Bribery:  No payments or promises to foreign officials for business advantage.
2. Books & Records / Internal Controls: Public companies must keep accurate records and prevent slush funds or disguised bribes.

The law reaches far beyond U.S. borders. If a company trades on U.S. markets even through ADRs or if a transaction touches U.S. soil, it can trigger FCPA jurisdiction. The DOJ handles the criminal and civil anti-bribery cases which may have a new whistleblower component. The SEC handles the accounting and internal-control violations, which is the classical whistleblower component. Together, they’ve brought some of the largest corporate penalties in history, from Airbus and Goldman Sachs to Ericsson, Raytheon Technologies, and others.

The New Enforcement Climate

But enforcement is now entering a new era. In early 2025, the White House issued an Executive Order temporarily pausing new FCPA investigations, pending review of whether aggressive enforcement was “hurting American competitiveness.” The DOJ followed with new guidance emphasizing “targeted” investigations, focusing on national security, large-scale bribery schemes, or those threatening U.S. economic integrity.

Translation:
Routine or mid-level cases may get less attention if indeed, they receive any attention at all. Top-tier cases are those involving defense, energy, infrastructure, or critical technology and remain squarely in play. That means fewer cases may be opened, but those that are opened will be high-impact, data-driven, and strategic.

Who’s Still at Risk

So, who’s still likely to face prosecution?
Here’s what we’re seeing:

1. Defense and Aerospace Contractors
   – Any bribery connected to foreign military sales or export licensing will stay high priority, especially where U.S. taxpayer funds are indirectly involved AND items of national security are implicated
   – Example: the Raytheon Technologies settlement, part FCPA, part False Claims Act, showed how payments abroad can trigger dual exposure.
2. Energy, Mining, and Infrastructure Companies
   – Especially those doing business through agents or joint ventures with state-owned entities.
   – The DOJ knows these sectors are corruption-dense and strategically sensitive.
3. Technology and AI Firms
   – Particularly those engaging in data transfers, sovereign contracts, or licensing agreements in high-risk jurisdictions.
   – The intersection between FCPA and AI safety compliance is an emerging area.

So even with a “pause,” the agencies aren’t dormant. They’re just prioritizing geopolitical significance and SEC linkages.

The False Sense of Security

Here’s the real danger and it may lead to a long-term wave of cases if a new administration has different priorities: Some companies may read this pause as permission to relax compliance, even though the FCPA is still in the books. They assume that because DOJ is quieter, no one’s watching. That’s a mistake. Whistleblowers, investors, and auditors often step into that gap. And let’s not forget about competitors too in blowing the whistle. This is a lot like PED’s in baseball. Through a bribe a business is ingratiating itself with a foreign power and like it was unfair to the players who didn’t use the PEDs.  Its unfair to the companies that are bribing for business. and, what happens overseas doesn’t always stay overseas. If a company falsifies its ledgers to hide bribes paid through a foreign intermediary, that accounting entry flows back into its SEC filings. And once it hits the books, it’s an SEC violation. Even if DOJ never brings a bribery case. That’s why whistleblowers are now more important than ever: they’re the bridge between foreign misconduct and U.S. accountability.

Filing Under the SEC Whistleblower Program

Under Dodd-Frank Section 21F, the SEC Whistleblower Program rewards individuals who voluntarily provide original information leading to successful enforcement with monetary sanctions over $1 million. If your tip leads to such a result, you’re eligible for 10 to 30 percent of what the government collects. Tips can be filed anonymously through counsel using the SEC’s online TCR system. Foreign nationals are eligible too. Whistleblowers who are insiders, compliance officers, employees, consultants, must carefully navigate attorney-client and confidentiality restrictions. That’s where experienced counsel matters.

Documentation is key. Internal emails, wire records, shell-company contracts and anything showing intent to disguise or misclassify payments. Even if the DOJ pauses criminal cases, the SEC can proceed civilly, and your tip may be the trigger that moves a dormant file forward.

The DOJ Whistleblower Pilot Program

There’s also the new DOJ Corporate Misconduct Whistleblower Pilot Program. It’s designed for cases outside the SEC’s jurisdiction such as privately held companies or non-issuers involved in bribery, money laundering, or sanctions evasion. The DOJ program offers discretionary awards. Not guaranteed percentages, but still meaningful incentives for information that leads to recoveries. Think of it as the DOJ’s way of re-incentivizing reporting, even in a tightening enforcement environment.

Strategic Perspective & Closing

So where does that leave us?

• The FCPA hasn’t gone away, it’s evolving. Some may say it’s hibernating.  But when the hibernation is over, a new administration may be more interested in prosecuting cases then the present one is – and companies will be hard pressed to use losing defenses like everyone was doing it, or the prior administration said it was ok. They never said it’s OK, they indicated they wouldn’t enforce a lot of cases, a complete difference.
• The DOJ is more selective, but the SEC remains active.
• Whistleblowers now play the deciding role in what gets pursued.

Some companies will become emboldened, thinking reduced oversight equals reduced risk. But in truth, their risk just moved from the courtroom to the whistleblower’s inbox.

Because once falsified books cross into the SEC’s jurisdiction, what happened in Doha or Dubai, Lagos or London, can still end up in Washington’s enforcement files.
If you believe you’ve witnessed bribery, kickbacks, or falsified ledgers tied to overseas dealings, consult experienced counsel before you act.

Your information could help hold global corporations accountable and protect your rights under the whistleblower statutes.