FCPA freeze fallout

Trump's order has stalled investigations under Foreign Corrupt Practices Act, but cases involving Indian companies or those with operations in India may still face SEC scrutiny, penalties

- BHAVINI MISHRA

In early 2017, as US President Donald Trump assumed office for his first term, Mondelez International agreed to pay $13 million to settle charges from the US Securities and Exchange Commission (SEC) that its Cadbury unit had violated federal anti-bribery laws during efforts to expand a chocolate plant in Baddi, India.

In a statement, Mondelez said it was pleased to reach the civil settlement in which it neither admitted nor denied wrongdoing.

In 2019, Walmart paid $282 million to settle violations under the Foreign Corrupt Practices Act (FCPA) in India and other countries. This settlement concluded a seven-year investigation by the US Department of Justice (DOJ) and the SEC.

Fast forward to February 2025, President Trump's executive order paused FCPA enforcement for 180 days. The order has introduced uncertainty for ongoing cases involving Indian companies or those with operations in India. However, investigations may still proceed under SEC jurisdiction.

The FCPA is enforced jointly by the DOJ (criminal penalties) and the SEC (civil penalties).