U.S. President DonaldTrumphas signed an executive order pausing enforcement of the Foreign Corrupt Practices Act (FCPA), a law that makes it illegal for U.S. businesses to bribe foreign officials. This is the same law under which Gautam Adani has been charged.

Trump justified the move by saying the law puts American companies at a disadvantage globally. He also directed newly appointed Attorney General Pam Bondi to immediately stop all FCPA-related actions, including ongoing prosecutions of U.S. individuals and businesses accused of bribing foreign officials to secure international deals.

Trump condemned the law, calling it impractical despite its good intentions. "It sounds good on paper, but in practicality, it's a disaster," he said. He argued that the law discourages international business, stating, "If an American goes to a foreign country to do business, legally, legitimately, or otherwise, it's almost a guaranteed investigation and indictment. Nobody wants to do business with Americans because of it."

Trump further criticized the law, calling it a "Jimmy Carter concept" that "sounds good but is bad." He argued that it harms the U.S. economy by discouraging deals, saying, "It hurts the country, and many, many deals can’t be made because nobody wants to do business."

Why the change?

The executive order is meant to help American businesses compete better worldwide. President Trump has asked Attorney General Pam Bondi to create new, fairer rulesfor enforcing the Foreign Corrupt Practices Act (FCPA) of 1977, according to a White House fact sheet shared by Reuters.

The fact sheet explains that U.S. national security depends on American companies having a strong global presence. It states that Trump wants to stop the strict and unpredictable enforcement of FCPA, which he believes makes U.S. businesses less competitive.

Charges on Adani under FCPA

On November 20, the U.S. Securities and Exchange Commission (SEC) and Department of Justice (DOJ) charged Gautam Adani, his nephew Sagar Adani, and others in a $250 million bribery case under the Foreign Corrupt Practices Act (FCPA).

The SEC claims Adani misled U.S. investors by pretending to have strict anti-bribery rules while secretly paying bribes. The alleged bribery happened in September 2021, during a $750 million bond deal, with $175 million from U.S. investors.

A New York grand jury issued arrest warrants for Gautamand Sagar Adani, accusing them of bribing Indian officials to win solar energy contracts. After the news, Adani Group’s stock fell up to 20% when markets opened.

Adani Group denies the charges, calling them "baseless," but the case threatens its global business and reputation.

What is FCPA

The Foreign Corrupt Practices Act (FCPA) is a U.S. federal law that makes it illegal for American businesses and individuals to bribe foreign government officials to gain business advantages.

In addition to preventing corruption, the FCPA also requires publicly traded companies to keep accurate financial records and have proper internal controls to ensure transparency and prevent fraud.