Staying the course: Navigating compliance amid uncertainty

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Corporate compliance professionals are no strangers to uncertainty. Yet, the Executive Order by former President Trump suspending Foreign Corrupt Practices Act (FCPA) enforcement has introduced a unique challenge into the compliance landscape. I recently had the opportunity to chat with Kristy Grant-Hart, Vice President and Head of Compliance Advisory Services at Diligent, who shared some invaluable insights on navigating these turbulent compliance waters.

What now?

When compliance officers first heard the news of Trump's order suspending FCPA enforcement, it raised an immediate question: "What now?" During a recent Diligent webinar, Grant-Hart polled compliance practitioners about whether they were adjusting their programs in response to this dramatic policy shift. The result was unanimous: 100% of the participants indicated no planned changes. This reaction underscores a vital point: robust compliance programs are not solely built around one piece of legislation, no matter how significant.

But the FCPA has never been the only game in town. State Attorneys General, international regulations such as the U.K. Bribery Act, and cross-border cooperation among European regulators remain firmly in play. Indeed, with a new European task force from the U.K., Switzerland and France, enforcement against bribery and corruption continues unabated. Multinational corporations especially recognize the inherent value in ethical practices, independent of shifting political climates.

The business value

Beyond simply staying compliant with international laws, Grant-Hart emphasized businesses must see compliance through the lens of business value. Compliance programs must be consistent, credible, and strategically embedded in daily operations. Boards and senior leadership appreciate consistency, especially in tumultuous times. Inconsistent execution, especially if blamed on policy fluctuations, undermines both internal credibility and external perception. The solution is clear; stay consistent in your risk-based approach and execution, regardless of the temporary political winds.

An equally critical aspect of compliance programs, Grant-Hart highlighted, is the continued fostering of a speak-up and listen-up culture. Internal investigations, fraud prevention, and managing conflicts of interest remain essential. Indeed, when regulatory enforcement ebbs, companies often face heightened internal fraud and misconduct risk. Compliance officers must continue promoting a culture where employees feel safe to voice concerns and where management listens and responds appropriately.

On a related note, Grant-Hart pointed out the broader business imperative of managing reputational risks and internal morale. Regulatory oversight aside, the reputational fallout from internal fraud, ethical breaches, and inadequate internal investigations can devastate a company's bottom line. Organizations should maintain vigilant internal oversight, proactive fraud prevention measures, and robust investigative protocols.

One of the strategic benefits from the Spark Consulting merger into Diligent is blending technological capability with practical compliance advisory expertise. Effective compliance software is crucial, particularly in managing areas such as third-party risk, sanctions screening, and conflict management. But software alone is not enough. Grant-Hart emphasized the need for businesses to fully leverage technology through proper implementation, clear multi-year roadmaps, effective risk assessments, interesting communication, and actionable reporting. It is this marriage of technology and human expertise that builds truly resilient compliance programs.

Looking down the road

Looking ahead, companies face escalating risks beyond anti-bribery laws. Grant-Hart spotlighted the rapidly developing trade sanctions landscape, forced labor compliance under the Uyghur Forced Labor Prevention Act, and related EU directives. The $3 billion worth of goods blocked at U.S. borders underlines the stark reality of these risks. Modern slavery and human trafficking compliance efforts, historically underappreciated by corporations, are becoming increasingly non-negotiable for global businesses. Emerging legislation, particularly in Canada and the EU, emphasizes meaningful action over mere compliance statements.

As Grant-Hart emphasized, “it’s never acceptable for compliance teams to sit back and do nothing." Today, strategic foresight is critical. Compliance leaders must engage senior management and boards not merely by ticking off backward-looking metrics, training sessions completed, or policies updated, but by illuminating forward-looking risks and their impact on business value. Effective compliance officers show strategic thinking about risks ahead and provide management tools to address future challenges proactively.

In this tumultuous year of 2025, clarity and consistency are critical. Compliance officers must resist temporary distractions and remain vigilant, ensuring their organizations navigate both current uncertainties and future risks confidently. By staying the course, compliance teams strengthen their companies for whatever comes next.