On April 15, 2025, the Trump Administration issued an Executive Order titled “Restoring Common Sense to Federal Procurement” that seeks to reform the Federal Acquisition Regulation (“FAR”) and agency-specific supplements to contain only those “provisions required by statute or essential to sound procurement.” Along with a supplemental fact sheet, the Executive Order states that “any FAR provisions that do not advance these objectives should be removed.” This overhaul of the FAR has been widely anticipated during the first few months of the Trump Administration, although its implementation is expected to be a multi-year process.
Europe Steps Up as U.S. Pauses FCPA Enforcement: What Companies Need to Know About the New International Anti-Corruption Taskforce
In a significant move signaling Europe’s growing autonomy in global anti-corruption enforcement, prosecutors from the United Kingdom, France, and Switzerland have formed a new cross-border alliance: the International Anti-Corruption Prosecutorial Taskforce. Announced on March 20, 2025 by the U.K.’s Serious Fraud Office (SFO), the taskforce is designed to deepen cooperation among these three countries on bribery and corruption investigations—at a time when the Trump Administration is reshaping the United States’ approach.
Fifth Circuit Concurrence Adds Voice to FCA Constitutionality Questions
A first appellate circuit judge has questioned the False Claim Act’s constitutionality. In the Fifth Circuit’s decision last month in United States ex rel Montcrief v. Peripheral Vascular Assocs., P.A., No. 24-50176, — F. 4th –, 2025 WL 939890 (5th Cir. Mar. 28, 2025), Judge Stuart Kyle Duncan separately wrote a concurring opinion to express skepticism regarding the constitutionality of the qui tam provision of the False Claims Act. Adding to a decision issued by a Florida federal district court last fall, Judge Duncan said that the qui tam provision of the False Claims Act violates the Appointments Clause of the Constitution because it allows private citizens to exercise the power of the executive branch despite not being appointed or confirmed as an officer of the United States.
FinCEN Narrows Focus on Southwest Border
In the last few weeks, the Financial Crimes Enforcement Network (FinCEN) has circulated several instructions focusing on money services businesses operating in the southwest United States, answering the current Administration’s call for increased security measures in that area.
On March 11, FinCEN issued a Geographic Targeting Order (GTO) adding more requirements to certain money services businesses (MSBs) operating along the southwest United States border in Texas and California. Federal law permits the Secretary of the Treasury to issue a GTO if he finds that additional measures are needed to properly comply with the Bank Secrecy Act. A GTO lasts 180 days, unless extended.
Treasury Department Formally Exempts U.S. Companies from CTA
The guidance U.S. companies have been waiting for after years of ups and downs is finally here. In line with our last update, on March 21, 2025, FinCEN issued an interim final rule exempting U.S. companies and persons from the requirement to report, modify, or correct beneficial ownership information under the Corporate Transparency Act (CTA) by excluding such entities from the scope of the term “reporting company.”
Treasury Department Declares Intent to Limit CTA to Foreign Reporting Companies
After the Financial Crimes Enforcement Network (FinCEN) stated that it would hold off on taking enforcement actions against Reporting Companies for failure to comply with the March 21, 2025, deadline under the Corporate Transparency Act (CTA), the U.S. Department of the Treasury announced its own intention to limit CTA enforcement to foreign companies.
FinCEN’s March 21 CTA Deadline to Report Beneficial Ownership Info Will Not Be Enforced … Yet
The Financial Crimes Enforcement Network (FinCEN) published new guidance on Feb. 27, 2025, putting its plan to begin enforcing the Corporate Transparency Act (CTA) on hold. After the Feb. 17 order by the U.S. District Court for the Eastern District of Texas in Smith v. United States Department of Treasury made the CTA once again enforceable, FinCEN set a deadline of March 21 for reporting companies to submit beneficial ownership information.
Compliance, Enforcement and Prosecution Policy and Trends, Fraud, Deception and False Claims, Government Contracts
Department of Justice Suggests “Aggressive” Enforcement of False Claims Act
In a speech to the Federal Bar Association’s annual qui tam conference on Feb. 20, 2025, Michael Granston, Deputy Assistant Attorney General for the Commercial Litigation Branch at the U.S. Department of Justice, discussed how the Trump administration plans to “aggressively” enforce the False Claims Act (FCA). His statements come on top of other comments from Trump administration officials stating that DEI, domestic sourcing/industry, pandemic relief and cost-related considerations will be among the administration’s key enforcement priorities. This raises compliance risks for numerous entities, including healthcare and government contracting industries, federal grant recipients, educational institutions, and cybersecurity, import/export, freight forwarding and infrastructure companies.
Granston’s remarks were made one day before the U.S. District Court for the District of Maryland preliminarily enjoined the provision concerning certifications under the FCA in Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The order would require a term in every procurement contract or grant award that compliance in all aspects with all applicable federal antidiscrimination laws is material to the government’s payment for purposes of the FCA.
Read on to learn more about Granston’s remarks and the FCA enforcement landscape.
Texas Court Stays Nationwide Injunction Staying the CTA, Deadline to Report Beneficial Ownership Information is March 21, 2025
In our last update, we reported that despite the Supreme Court staying the nationwide injunction against FinCEN’s enforcement of the CTA in one Texas case, a nationwide stay of the Reporting Rule granted by a federal judge in the Eastern District in Smith v. United States Department of Treasury (6:24-cv-00336) remained in effect.
Practical Tips for Companies Following President Trump’s Pause on FCPA Enforcement
Since the President signed the February 10, 2025 Executive Order (Order) pausing enforcement of the Foreign Corrupt Practices Act (FCPA) (Client Alert: President Trump issues Executive Order “Pausing Foreign Corrupt Practices Act Enforcement to Further American Economic and National Security”), companies with cross-border business operations have likely faced questions from both internal and external stakeholders regarding what the Order means from a practical, day-to-day perspective. In some cases, this may include questions as to whether companies need to continue maintaining anti-bribery and anti-corruption compliance programs and related controls. The short answer is “yes.” Read on to learn why and for practical advice for internal legal teams addressing the current landscape.