What Indian Businesses Must Know About the US’s New FCPA Enforcement Regime

In 2025, the U.S. Department of Justice (DOJ) launched sweeping changes in its Foreign Corrupt Practices Act (FCPA) enforcement model, a watermark in the future direction of international businesses, especially Indian businesses, when it comes to compliance. The new policies, which strictly align with U.S. economic interests along with the battle against transnational criminal organizations (TCOs), bring about record shifts for Indian businesses operating in the global market. Knowledge of these transitions and the implications they have on the business environment in India is vital for the business to hedge against the risk and comply with the American standards of fighting corruption.

This article deconstructs the significant transitions in the FCPA enforcement regime, analyzes their implications for Indian business, and offers insights into how Indian business can align their compliance strategies in order to navigate the changing regulations.

Strategic Realignment of FCPA Enforcement Priorities

The FCPA has been a tool against corruption to avoid corrupt business practices involving U.S. persons or U.S.-based companies. The policy change by the DOJ, initiated in February 2025 with Executive Order 14209, however, departs from the earlier policy of apparently targeting corporate corruption in a broad sense. Rather, the new enforcement regime prioritizes further protection of U.S. economic interests and targeting of corruption related to transnational organized criminal organizations.

The Key Changes

More Emphasis on Economic Interests

The DOJ's new agendas emphasize cases of misconduct that directly hurt U.S. entities by preventing them from equal access to compete or inflicting economic damage on them. This "America First" agenda is more than abstract anti-corruption objectives and has a new emphasis on shielding U.S. businesses and ensuring they are able to compete in international markets.

Targeting Criminal Networks

The new guidelines have focused the limelight on criminal networks, i.e., cartels and TCOs, and the corruption of these networks. The DOJ has focused more on abuse involving money laundering, shell companies, and bribes paid by foreign officials to criminal networks. Quite a departure from the yesteryear FCPA enforcement based on one instance of garden-variety business corruption.

Streamlined Investigations

All FCPA investigations are now required to be approved by the Assistant Attorney General for the Criminal Division or above. This modification puts decision-making at the center and ensures that enforcement priorities are in line with overall administration objectives and minimize the potential for overreach in low-priority or low-level cases.

The New Corporate Enforcement and Voluntary Self-Disclosure Policy

One of the key pillars in the DOJ's new FCPA policy is the Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP), making more formalized incentives for voluntary self-reporting accessible to companies. Those that satisfy all four prongs—voluntary self-disclosure, cooperation, timely remediation, and no aggravating facts—are available for declination from prosecution. In aggravating circumstances cases, companies can still receive the benefits of non-prosecution agreements with a 75% reduction in fines.

This change is a more favorable policy for firms willing to collaborate, which offers a great chance for Indian firms to voluntarily disclose any probable breaches prior to being caught by the regulators. With the worldwide implementation of the FCPA, moving ahead in counteracting issues on compliance can ensure prevention from heavy fines, which largely happen due to late or inappropriate disclosure.

How the New FCPA Enforcement Regime Impacts Indian Businesses

Indian businesses, especially those operating in overseas markets, are impacted by the new FCPA enforcement regime in new ways. An awareness of these changes helps prevent falling into the trap and compliance.

1. Expanded Focus on U.S.-Competitor Effects

   One of the most dramatic aspects of the new enforcement strategy is the emphasis on defending U.S. economic interests, specifically those where Indian businesses would be able to compete with American businesses for profitable contracts. The DOJ's enforcement strategy now factors in whether corrupt activities hurts U.S. businesses by depriving them of equal access to competition. It will be most applicable to Indian defence, infrastructure and telecom firms with large American company stakes.

   
   

   For instance:

   Indian defence companies bidding for a project with American entities, or in a joint venture with U.S. companies, could be subjected to closer examination if they've had any part to play in corruption or bribery.

   
   

   Indian telecom companies vying with American technology businesses to win 5G infrastructure contracts could also come under intensified scrutiny if there is any kind of corruption behind their deals.

   
   

2. Exposure in Sensitive Sectors of U.S. National Security

   The new regulations target industries that are particularly considered essential to U.S. national security, including critical minerals, deep-water ports, and telecommunications. Indian companies engaged in areas like the following are placed under particular risk:

   
   

   Defense and Aerospace: Indian companies bidding on defense projects or partnering with U.S. companies may be subjected to tighter enforcement scrutiny if they engage in corruption or bribe-paying.

   
   

   Telecommunications: As the need for 5G and telecom infrastructure grows all the more important, even a hint of corruption or misconduct can raise questions, particularly in those projects where American companies are bidding too.

   
   

   Critical Minerals and Rare Earth: Indian business entities which are engaged in supply or mining of strategic minerals like lithium and cobalt may be targeted because of their function in assuring supply chains in strategic sectors.

   
   

   For these industries, the national security consciousness of the DOJ implies that it is essential for Indian businesses to be watchful of their compliance procedures so that all business activities are legitimate and free from corruption.

   
   

3. Regional Risk Amplification: Latin America and Other High-Risk Areas

   Indian companies having operations or partners in the Latin American regions, where transnational criminal organization (TCO) and cartel businesses are strong, can discover their exposures building up under the new FCPA regime. It will be especially applicable to Indian pharma businesses having Mexican and South American presence, IT services firms with regional presence, and manufacturing firms with supply hubs in high-cartel areas.

   
   

   Even legitimate activities of business in such areas can be brought into the spotlight if they are with counterparts who have the potential for TCO connections. Indian businesses engaged in such activities need to proactively make their compliance program robust and conduct due diligence on third-party relationships such that they are not inadvertently linked with crime.

Competitive Disadvantage Through Enforcement Asymmetry

One of the indirect impacts of the new enforcement system is the risk of enforcement asymmetry. Indian firms would be subjected to more forceful enforcement activity when competing with U.S. companies. With the DOJ now specifically concerned with insulating U.S. business from disadvantage caused by corruption, Indian firms would be under more intense scrutiny as U.S. companies receive an improved regulatory setting.

For example, Indian companies that are doing government contracting or infrastructure work where U.S. companies are bidding on work might have greater enforcement if they are bribing or corrupting in some manner. This lessens the competitiveness of Indian companies, particularly in more corrupt areas or where they are bidding on contracts for U.S. business or strategic interests.

Preparation for the New FCPA Enforcement Landscape

With the increased threats and opportunities created by the new FCPA enforcement regime, Indian businesses need to institute proactive measures to improve their compliance programs. The following are some of the most important initiatives that Indian businesses can adopt:

1. Perform Geographic and Sectoral Risk Exposure

   Indian companies must carry out strenuous examinations of their businesses in countries that are a material source of cartel or TCO activity, such as Latin America. They must commit more compliance resources to operations in industries that are essential to the national security of the United States, such as defense, telecommunications, critical minerals, and infrastructure.

   
   

2. Improve Third-Party Due Diligence

   With the new focus on cartel affiliations and individual accountability, Indian businesses need to enhance their screening processes for agents, consultants, and business associates, especially in high-risk areas. Improved know-your-customer (KYC) processes and continuous surveillance of third-party relationships can reduce risks.

   
   

3. Enhance Government Contract Oversight

   Indian government contracting businesses, particularly those bidding on markets with U.S. competition, must have strong control processes established. All business development activity, such as meetings, communications, and agreements, must be well documented so that transparency and compliance are ensured.

   
   

4. Ensure Strong Business Courtesy Controls

   Even though the guidelines diminish emphasis on customary business etiquette, companies should not lower their guard regarding gifts, food, and hospitality. Patterns of more significant contraventions can be identified with data analytics and pattern detection technology.

Conclusion

The new FCPA enforcement model of the U.S. DOJ constitutes a paradigm shift in dealing with anti-corruption priorities and their assessment and pursuit. For Indian firms, the changes offer challenges and opportunities. Emphasis on the protection of U.S. economic interests, war against corruption associated with criminal networks, and extension of voluntary self-disclosure require greater vigilance and proactive compliance.

Indian companies need to adjust their approach to suit the new environment of enforcement. Through strong compliance programs, improved due diligence, and having strong management of government contracts, Indian companies can manage the risk and be successful global actors.

Indian companies can survive in this new enforcement environment and stay competitive while minimizing regulatory risk exposure if they have the proper preparation and strategic vision.

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