Optional Rule of Law (Continued)

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Law and Courts · Political Power · White House · Business · politics

persons from reporting, narrowing obligations to certain foreign entities and pushing deadlines.⁹ ¹⁰ ¹¹ ¹² The message to prosecutors in Tallinn or compliance officers in Paris isn’t that America endorses secrecy; it’s that an “historic reform” can be redefined by process after the ribbon-cutting.¹³ (CTA pivot and filings guidance. ⁹ ¹⁰ ¹¹ ¹² ¹³)

Then came the loudest signal: on February 10, 2025, a White House order paused enforcement of the Foreign Corrupt Practices Act pending new guidelines.¹⁴ Transparency International warned the halt “will harm economies and governance worldwide.”¹⁵ By June, DOJ resumed a narrower regime—leaner staffing, a higher bar for new cases, and more declinations for companies that self-report and remediate.¹⁶ ¹⁷ Whatever the rationale, the permission structure is clear to survey respondents filling out the CPI: enforcement is a toggle. (Pause, backlash, narrower restart. ¹⁴ ¹⁵ ¹⁶ ¹⁷)

Walk the map down to the ground and the texture rhymes. In Los Angeles, ex-Councilman José Huizar took a 13-year sentence after a sprawling pay-to-play scheme tied to development downtown. “Huizar sold out his city,” the U.S. attorney said, a line that lands because it sounds like a neighbor, not a statute.¹⁸ In Pittsburgh, a building inspector pleaded guilty for cash to “move” inspections. “Whether it’s $200 or $200,000, a bribe is a bribe,” another U.S. attorney said—an ethic pared to the bone.¹⁹ These cases don’t set national scores alone; they do set norms. (Municipal cases as signal. ¹⁸ ¹⁹)

Perception isn’t perfect, but it is predictive. The CPI’s sources are expert and business surveys precisely because procurement officers, auditors, in-house counsel, and bankers are the first to notice the gap between written rules and lived incentives.³ In the U.K., when beneficial-ownership data went public, officials reported it actually helped cases: **“All Law Enforcement Organisations we spoke to had used the PSC register as part of their investigations.”**²⁰ The lesson isn’t that disclosure solves corruption; it’s that visibility makes the honest path cheaper than the crooked one.²⁰ ⁵

So why the urgency now? Because the costs compound. The longer major democracies waffle, the more global authoritarians argue that “everyone does it,” the more capital prices in impunity, and the more cross-border enforcement networks atrophy.⁴ ⁵ The United States still sets standards—when it chooses to. Congress did pass the Foreign Extortion Prevention Act, finally targeting the demand side of foreign bribery by criminalizing foreign officials who solicit or receive bribes from Americans.²¹ That tool pairs naturally with a credible FCPA, not a paused one—and it only works if the Department actually swings it.¹⁶

None of this requires poetry to fix. Give the Court’s code an external cop on the beat; fund state and federal watchdogs to audit procurement and publish machine-readable contracts by default; restore a predictable FCPA posture with bright-line factors and publish declination data so firms calibrate to compliance, not guesswork; un-narrow the beneficial-ownership regime so law enforcement can follow money across borders without phoning a friend.⁵ ⁹ ¹⁰ ¹⁶ ²⁰ “Leadership is not a speech; it’s a sentence—brought and won,” a career prosecutor told me, half joke, half creed.

Back in the room, the maps go dark and the microphones return to their persistent hum. The United States can nudge its color brighter on that screen, but not with declarations and not with vibes—only with dull, durable enforcement that outlasts any administration’s appetite. At some point, if we keep treating accountability like a dimmer switch, the scandal stops being remarkable at all.¹ ² ²²

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