Reported by Bhavini Mishra
The suspension of the nearly 50-year-old Foreign Corrupt Practices Act (FCPA) by American President Donald Trump’s administration could delay or halt legal proceedings against the Adani group in the United States, experts have said, adding that the duration of the pause and outcome of the Department of Justice’s (DOJ’s) review of FCPA enforcement guidelines has to be watched closely.
“It is important to note that the executive order directs a review of current and past actions related to the FCPA, and the future of these cases will depend on the new guidelines established by the attorney general,” said Rishabh Gandhi, founder of law firm Rishabh Gandhi and Advocates.
Trump on Monday signed an executive order directing the DOJ to halt all persecutions of Americans accused of bribing foreign officials while trying to win or retain business in their respective nations.
The FCPA, enacted in 1977, prohibits US companies and foreign firms listed on US stock exchanges from bribing foreign officials to obtain or retain business.
In November last year, the DOJ accused Gautam Adani, founder of the Adani group, along with his nephew Sagar Adani and other company executives, of offences including conspiracy to violate the FCPA, securities fraud, and wire fraud.
The indictment alleged the Adani group orchestrated a bribery scheme involving over $250 million in payment to government officials in India to secure lucrative solar energy contracts.
Trump’s Monday order halts implementing the FCPA and orders Attorney General Pam Bondi to review current and past decisions related to the law and make guidelines for enforcement.
Financial Crime News Briefs 