Tomislav Joksimovic: «A More Aggressive Stance From US Authorities»
Many expect that a second Trump administration—focused on deregulation and business-friendly policies—could lead to more leniency from U.S. authorities in handling legal violations. However, as attorney Tomislav Joksimovic explains on finews.first, the reality for foreign financial institutions and corporations is far more complex.
The Trump administration is implementing unprecedented measures to reshape and downsize the federal government. This raises the question of how the U.S. will enforce its laws and regulations in the future—especially with regard to Switzerland and global business.
In the short term, the sweeping changes—particularly through the newly created «Department of Government Efficiency»—will significantly impact the operations of federal agencies responsible for enforcing U.S. laws and regulations domestically and abroad. However, once the situation stabilizes, the continued extraterritorial enforcement of U.S. regulations is expected.
DOJ’s Central Role in Financial and Corporate Crime
The U.S. Department of Justice (DOJ) remains the primary federal agency for prosecuting financial and corporate crimes, including corruption, money laundering, and sanctions violations. With US Attorney's Offices in every state, the DOJ has long played an active role in cross-border prosecutions.
Key offices like the Southern and Eastern Districts of New York (SDNY and EDNY) have led major cases, including tax evasion cases against multiple Swiss banks (SDNY), high-profile corruption investigations involving FIFA (EDNY), and the record $8.9 billion penalty imposed on BNP Paribas for sanctions violations (SDNY).
OFAC Gains Influence as the SEC Retreats
In regulatory and civil enforcement, the US Treasury's Office of Foreign Assets Control (OFAC) is likely to remain the key agency for global businesses and financial institutions under Trump. This is especially relevant given expectations that the U.S. Securities and Exchange Commission (SEC), the primary financial markets regulator, will reduce its enforcement activity under a second Trump term.
OFAC maintains sanctions lists, penalizes violations of U.S. sanctions, and refers intentional breaches for further criminal prosecution by the DOJ.
A Complex Reality for Swiss and Global Businesses
While many anticipate that Trump's deregulatory, pro-business stance could lead to a more forgiving approach to corporate misconduct, the reality for Swiss and international financial institutions may be much more nuanced.
For example, Trump has previously called the U.S. Foreign Corrupt Practices Act (FCPA) a «horrible law»—but not because he opposed its application to foreign companies. Rather, he saw it as a competitive disadvantage for American firms.
Even though Trump’s first term saw more corporate crime prosecutions than Biden’s, it is unclear if this trend will continue. However, a second Trump administration could bring an even more aggressive enforcement approach against foreign companies and individuals.
U.S.-Russia Relations: Normalization or Continued Sanctions?
While the Trump administration is expected to prioritize immigration and drug-related crimes, national security, sanctions, and export controls will remain at the forefront. Trump is likely to maintain, if not escalate, the aggressive enforcement of these areas—even if he pursues a U.S.-brokered resolution to the Ukraine-Russia conflict.
Such a resolution could lead to a partial normalization of U.S.-Russia relations, but a full rollback of sanctions against Russian companies and individuals is unlikely. Furthermore, newly appointed Treasury Secretary Scott Bessent has hinted that additional Russia sanctions may be necessary to bring Moscow to the negotiating table.
At the same time, the Trump administration is expected to intensify pressure on other geopolitical rivals such as China and Iran through stricter sanctions enforcement.
Continued Crackdowns Despite Budget Cuts
Beyond sanctions and other priorities, the Trump administration is likely to continue aggressive enforcement in traditional areas such as corruption and money laundering—though this could be somewhat constrained by planned budget cuts.
Trump has appointed experienced professionals to key DOJ positions, including former SEC Chairman Jay Clayton, now leading the powerful SDNY office. Though considered market-friendly due to his SEC tenure, Clayton's record suggests he is willing to take decisive action against clear violations.
Return to Traditional Approaches and Faster Case Resolutions
Clayton’s appointment to SDNY signals a potential shift away from novel enforcement theories in emerging areas like cryptocurrencies and artificial intelligence—aligning with Trump’s political embrace of these sectors. Instead, enforcement efforts may return to more conventional approaches, potentially leading to faster case resolutions.
Under Biden’s DOJ, corporate cases often stalled due to multiple layers of political review. A leaner Trump-era DOJ structure could grant U.S. attorneys greater autonomy, potentially expediting investigations and prosecutions.
Tomislav Joksimovic is a U.S. attorney, global litigator, and crisis manager. He is a partner at the Swiss law firm 5Gambit Disputes.
