Key Officials Departing US SEC Anti-Bribery Unit, Sources Report

Introduction

The departure of key leadership from the U.S. Securities and Exchange Commission's foreign corrupt practices unit indicates a significant shift in the agency at a time when anti-corruption enforcement is being scaled back.

Context

Charles Cain, who has led the SEC's Foreign Corrupt Practices Act unit since 2017, and Tracy Price, who has served as deputy chief since 2018, are leaving the agency amidst a broader trend of diminished enforcement under the Trump administration. This shift comes as investigations into foreign bribery and corruption are increasingly facing obstacles.

Developments

Sources say that both Cain and Price’s departures have not been publicly announced outside the agency. The Trump administration’s emphasis on reducing regulatory pressures includes consulting with advisors like billionaire Elon Musk on mass layoffs and reorganization efforts.

In February, the administration implemented a temporary pause in the enforcement of the FCPA, a crucial U.S. law that prohibits American companies from engaging in bribery when conducting business abroad. President Trump has instructed Attorney General Pam Bondi to reassess the enforcement of this law within a 180-day period. While Trump’s executive order did not specifically mention the SEC, Antonia Apps, the acting deputy enforcement director, indicated that the SEC will align with the Justice Department's directives.

Trump has criticized the anti-corruption law, arguing that it unjustly disadvantages U.S. companies, putting them at risk of penalties for practices that he describes as commonplace in other countries. This perspective reflects a broader trend of the administration favoring leniency in business regulations.

However, advocates for anti-corruption measures argue that the FCPA plays a vital role in enforcing accountability and has led to significant penalties against foreign companies with connections to the U.S.

One insider reported that the FCPA team has been instructed to halt their work on ongoing FCPA cases, raising concerns about the future of anti-corruption enforcement.

Conclusion

The upheaval within the SEC’s foreign corrupt practices unit signals a growing skepticism about the efficacy of anti-corruption laws in the current U.S. political climate, potentially undermining the legal frameworks that govern international business conduct. As leadership changes, the impact on ongoing efforts to combat corruption remains to be seen.