In 2012, compliance lawyer Alexandra Wrage went on CNBC to advocate against corruption, facing off against future president Donald Trump, who criticized the Foreign Corrupt Practices Act (FCPA) as a hindrance to American companies. Surprisingly, the Trump administration turned out to be aggressive in enforcing the FCPA, doubling the number of prosecutors and expanding resources for anti-corruption efforts. However, concerns arise about the potential for corruption charges to be weaponized under the FCPA, as seen in Russia targeting political opponents under the guise of fighting corruption.
Following the passage of the Global Magnitsky Act in 2016, which allows for sanctions against human rights abusers, concerns were raised about the Trump administration’s commitment to using this law. While the administration initially showed a hands-off approach, fears exist that in a second term, Trump may show favoritism and inconsistency in applying the law to protect allies like Mohammed bin Salman.
Former DOJ prosecutor Fry Wernick sees an opportunity for U.S. foreign policy to target corrupt adversaries with FCPA charges, as a complement to sanctions. The appointment of key leadership, such as Sen. Marco Rubio for secretary of state and Matt Gaetz for attorney general, will play a significant role in determining the administration’s approach to prosecuting corruption. Ultimately, the direction in which the administration takes on corruption enforcement will depend on the people Trump surrounds himself with.
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