President Trump orders to pause FCPA law that led to Binance exec 8-month detention in Nigeria

The president of the United States, Donald Trump signed an executive order regarding the FCPA on Monday. He directed the Justice Department to temporarily suspend the prosecutions of Americans accused of bribing foreign government officials while trying to win or retain business in their countries.

The law has been in place since 1977 and has cost many business owners a lot, even landing some in jail. One publicly chronicled case was Tigran Gambaryan’s experience with the Nigerian government, who wanted a pound of flesh from Binance and held him “hostage” because he did not meet their demands. 

More about the FCPA law 

Trump’s order pauses enforcement of the Foreign Corrupt Practices Act (FCPA). He also charged Attorney General Pam Bondi to review current and past actions related to the law and prepare new guidelines for enforcement.

The nearly half-century-old law does not allow companies that operate in the United States to bribe foreign officials. It is a guide for how American businesses operate overseas, and Trump believes relaxing the law could be good for US-native companies. 

“It’s going to mean a lot more business for America,” Trump himself said while signing the order in the Oval Office on Monday. The POTUS has always had it out for the FCPA, even from his first term in office. 

He called it a “horrible law” and said “the world is laughing at us” for enforcing it. The statement implies that it has done more harm than good. However, according to the anti-corruption watchdog Transparency International, the FCPA made the United States a pioneer in addressing global corruption.

While it is true the FCPA served as some sort of moral conscience for businesses operating outside the US, there are many cases where it has worked against the companies. 

One good example happened when Tigran Gambaryan was remanded in Nigeria for eight months in 2024. As Binance’s top crypto sleuth, Gambaryan, who has years of experience as a financial detective with the IRS specializing in crypto crimes, was chosen to represent the company in a peacekeeping mission in Nigeria. 

At the time, the country blamed Binance for playing a role in the naira’s devaluation and for reportedly funding terrorists. Binance sent a delegate team to solve this issue, but when the team arrived, they found out the officials wanted a $150 million bribe to be paid in crypto directly into their wallets. 

The FCPA was an apparent hurdle in that scenario. Gambaryan, who had worked for the IRS, knew well how it worked. If they gave such a direct bribe, they would be in violation of the law. There was also a suggestion that the Nigerians would not let them leave if they did not meet their demands. 

It presented a dilemma for Gambaryan, who ultimately decided to get himself and his team out of dodge before things escalated. They beat a hasty retreat home, but unfortunately, Gambaryan was lured back and held hostage for almost a year in terrible conditions. 

It took the intervention of the US government to get him home, and while he is now trying to move on with his life, the experience will always leave a bitter taste in his mouth. Gambaryan, who is reportedly considering a role in the Trump administration, would certainly approve of the president’s executive order. 

The implication of Trump’s order 

Trump’s executive order will have significant consequences for the US and its companies. Gary Kalman, executive director of Transparency International US said it “diminishes – and could pave the way for completely eliminating – the crown jewel in the U.S.’s fight against global corruption.” 

A White House factsheet has also said the law makes American companies less competitive.

“U.S. companies are harmed by FCPA over-enforcement because they are prohibited from engaging in practices common among international competitors, creating an uneven playing field,” the fact sheet reads.

Trump has called for “revised, reasonable enforcement guidelines” from the Justice Department that will not hamper American firms competing abroad, the factsheet also says.

Since the enactment of the law, a wide range of multinational firms have fallen under Justice Department scrutiny because of the law, including Goldman Sachs. 

In 2024, the Justice Department and the Securities Exchange Commission filed 26 FCPA-related enforcement actions, and at least 31 companies were under investigation by year-end. 

Cryptopolitan Academy: Are You Making These Web3 Resume Mistakes? - Find Out Here