Lawyers say President Donald Trump’s plans to halt the ban on foreign bribery laws have created a “unique opportunity” for the Serious Fraud Office (SFO) to display leadership.
On Monday, the US President ordered a pause to the Foreign Corrupt Practices Act (FCPA), claiming it was “overexpansive and unpredictable” and wasted “limited prosecutorial resources”.
The 1977 federal law made it illegal for US companies and citizens to make payments to foreign government officials “to secure any improper advantage” in order to win or retain business.
The FCPA was enforced by the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), which apply criminal and civil penalties, respectively.
Mark Srere, partner at law firm BCLP noted that “the US DOJ and SEC have led anti-corruption enforcement in the world for decades now and US companies likely spend a great deal more than their foreign counterparts on anti-corruption compliance.”
But he noted that the President halting this law “will certainly dry up US enforcers sharing information about US companies with their foreign enforcers.”
Srere added that it may “put a damper on foreign authorities from cooperating with the US”, explaining that “they can no longer be sure that the US would prosecute the companies vigorously.”
Aziz Rahman, senior partner at law firm Rahman Ravelli noted this decision is sending “shockwaves through the legal and business world”.
However, he pointed out that it gives the Serious Fraud Office a “unique opportunity” to display leadership for the next four years.
He went on to highlight that the anti-fraud agency can show that it is capable of holding companies to account, as the US usually shapes global enforcement.
“This sudden change that the current US president has engineered surprisingly early in his presidency will allow the SFO to step up, take the reins and prove it has what it takes to be the most effective global enforcement agency,” he noted.
Agreeing, Lloyd Firth, partner at WilmerHale, stated that if this order reduces US enforcement activity, other global law enforcement authorities, including the SFO, “may take the opportunity to increase their own enforcement efforts.”
However, Rahman pointed out that this is “certainly a sizeable task for the SFO”.
Last November it was revealed that the Serious Fraud Office was set to receive an additional £9.3m in funding as part of the government’s plan to crack down on fraud.
The anti-fraud agency’s annual budget for 2024/25 was set at £83.8m and £88.9m for 2025/26.
However, the agency’s issues with disclosure is well-documented.
Last April, HM Crown Prosecution Service Inspectorate stated in a report the SFO made progress in reforming how it manages evidence disclosure, but more government funding was needed to fix the problems.