Attorney General Walks Back FCPA to Focus on “Total Elimination of International Drug Cartels”
The proposed expansion of the Foreign Agent Registration Act (FARA) further into private commercial activity published in the Federal Register just over a month ago may be halted due to one of the first directives issued by Pam Bondi as Attorney General.
The subject of the February 5, 2025, memorandum to all U.S. Department of Justice (DOJ) employees is “GENERAL POLICY REGARDING CHARGING, PLEA NEGOTIATIONS AND SENTENCING.” It makes a priority “Shifting Resources in the National Security Division” where DOJ’s FARA Unit sits. “To free resources to address more pressing priorities,” the new Attorney General directs criminal charges under FARA, “shall be limited to instances of alleged conduct similar to more traditional espionage by foreign government actors.”
The new policy states that the FARA Unit and its entire section of the DOJ “shall focus on civil enforcement, regulatory initiatives, and public guidance.” It also disbands the division’s Corporate Enforcement Unit and returns its personnel to their previous posts.
Investigations of the DOJ Criminal Division’s Foreign Corrupt Practices Act (FCPA) Unit are similarly being redirected through a companion memo on “Total Elimination of Cartels and Transnational Criminal Organizations” or TCOs. This is referred to as “the total elimination policy.” The Attorney General requires the FCPA unit to “prioritize investigations related to foreign bribery that facilitates the criminal operations of Cartels and TCOs.” She also directs that they “focus away from investigations and cases that do not involve such a connection.”
The memorandum does not end the rulemaking that would expand the reach of FARA. However, it stands to reason that DOJ resources currently dedicated to narrowing the scope of the commercial exemptions from FARA will be repurposed. We expect the DOJ to take further action regarding the proposed FARA rulemaking in the few weeks remaining before the deadline for comment. We also expect to see previous FARA reform legislation reintroduced early in the 119th Congress. This will surely frustrate the bipartisan and bicameral group of federal lawmakers who have long sought to expand the reach of FARA and strengthen its enforcement.
