U.S. President Donald Trump has issued an executive order suspending enforcement of the Foreign Corrupt Practices Act (FCPA), effectively allowing U.S. companies to offer bribes to foreign officials and politicians. This decision is expected to prompt tighter scrutiny of potential corruption among officials in Kazakhstan.
On February 12, 2025, Trump signed an executive order pausing enforcement of the FCPA, a landmark anti-bribery law that has regulated U.S. business practices abroad since 1977.
The order directs the U.S. Department of Justice to suspend enforcement of the law, which previously criminalized bribery of foreign officials by American companies. Trump argued that the FCPA puts U.S. businesses at a competitive disadvantage internationally.
“The law looks good on paper, but in practice, it’s a disaster,” Trump stated, emphasizing that excessive regulatory oversight harms U.S. economic and national security interests.
Under the FCPA, companies and individuals could face up to 15 years in prison and fines of up to $250,000 for offering or coordinating bribes. The law was enforced in 24 cases in 2024 and 17 cases in 2023. Trump’s executive order tasks the attorney general with reviewing the law’s provisions.
U.S. companies have previously been linked to corruption scandals involving high-ranking Kazakhstani officials. The most infamous case, known as Kazakhgate, dates back to the late 1990s. American businessman James Giffen was accused of funneling tens of millions of dollars in bribes, along with luxury gifts, to secure access to Kazakhstan’s vast oil reserves. The investigation implicated former President Nursultan Nazarbayev and ex-Prime Minister Nurlan Balgimbayev, who allegedly received payments through offshore accounts in exchange for favorable investment conditions. However, Kazakhstani officials were never formally charged, and Giffen ultimately received a minor fine.
In December 2024, Mazhilis deputy Yermurat Bapi warned that a similar scandal — dubbed Kazakhgate-2 — could soon unfold.
“According to my information, a new grandiose scandal is brewing in the United States,” Bapi stated in an interview with Elmedia. “The U.S. Department of Justice is preparing a new criminal case against global kleptocrats who previously relied on American companies, insurers, and consultants. If they used these services, they will face prosecution.”
Speculation surrounding Kazakhgate-2 intensified after Nazarbayev’s December 2024 trip to Moscow to meet with Russian President Vladimir Putin. However, Trump’s decree has now cast doubt on whether the case will proceed.
Another major corruption-related dispute involving Kazakhstan is the Stati case. Since 2010, the Kazakhstani government has been embroiled in legal battles with Moldovan oligarchs Anatol and Gabriel Stati over the early termination of their subsoil use contracts. The dispute has led to litigation across multiple jurisdictions, including the U.S., U.K., and EU countries, with Kazakhstan’s National Fund assets being temporarily frozen. Some sources suggest that Timur Kulibayev, Nazarbayev’s son-in-law, played a role in the case.
Corruption concerns are not limited to Kazakhstan. In late January 2025, Russian Prime Minister Mikhail Mishustin publicly criticized Kyrgyz authorities for allegedly extorting Russian businesses operating in Kyrgyzstan.
“We urge the Kyrgyz leadership to cease administrative pressure on our companies and ensure the protection of Russian investors’ rights,” Mishustin said during a meeting with the then Kyrgyz First Deputy Prime Minister Adylbek Kasymaliev. He added that the Russian Foreign Ministry had submitted a diplomatic note detailing instances of extortion.
Despite Trump’s decree, Kazakhstani political analyst Marat Shibutov told The Times of Central Asia that he does not expect a surge in corruption involving American firms.
“Trump wants U.S. businesses to expand globally, but corruption is not America’s problem… it’s a problem for the countries involved,” Shibutov said. “Kazakhstan’s Anti-Corruption Service must recognize that if American companies are now permitted to offer bribes, the risk of abuse increases. Law enforcement will need to monitor these companies more closely than those from countries where bribery remains prohibited.”
Shibutov highlighted that Kazakhstani law still bans bribery, regardless of changes in U.S. policy. While Kazakhstan previously considered adopting a lobbying law to regulate corporate influence, the legislation was never passed, and Trump’s order is unlikely to revive discussions on the matter.
Additionally, Shibutov noted that few new American businesses enter the Kazakhstani market, making a significant increase in bribery unlikely. “The probability that this will lead to widespread corruption here is extremely low,” he concluded.
