DOJ

This shift in priorities comes in response to President Trump’s Executive Order on January 20, 2025, which Attorney General Bondi described as a directive that the federal government “revise existing national security and counter-narcotics strategies to pursue total elimination” of cartels and TCOs.

Attorney General Bondi’s Memo on Cartels and TCOs instructs the DOJ’s FCPA Unit, which until recently prioritized white collar enforcement, to focus on foreign bribery that facilitates Cartels and TCOs—such as bribery to facilitate human smuggling or trafficking narcotics and firearms—and to “shift focus away from investigations and cases that do not involve such a connection.”

At the same time, the Memo disbanded the DOJ’s Kleptocracy Team, Task Force KleptoCapture, and the Kleptocracy Asset Recovery Initiative.  These teams previously focused on stymying public corruption and global money laundering, particularly targeting the crimes of Russian officials and oligarchs.  Further, the Criminal Division’s Money Laundering and Asset Recovery Section was instructed to prioritize investigations, prosecutions, and asset forfeiture actions against Cartels and TCOs. 

In a separate Memo on general policy changes, Attorney General Bondi disbanded the Foreign Influence Task Force and National Security Divisions Corporate Enforcement Unit.  Criminal charges brought under FARA, 18 U.S.C. § 951, which generally require prior notification to the Attorney General before agents of a foreign government or officials act on their behalf, are now limited to instances of “conduct similar to more traditional espionage by foreign actors.”  In addition, the Counterintelligence and Export Control Section and its underlying FARA Unit are required to focus on “civil enforcement, regulatory initiatives, and public guidance.” 

These directives represent significant changes to the DOJ’s modern enforcement, even under the prior Trump Administration.  According to the DOJ, the stated goal of these changes is to eliminate the “improper weaponization of the criminal justice system at the federal and state levels” pursuant to President Trump’s executive orders.  

Commodity Futures Trading Commission

A reorganization of the Commodity Futures Trading Commission’s (CFTC) Division of Enforcement¹ was announced on February 4, 2025 by the Acting Chairman, Caroline D. Pham  The CFTC’s proclaimed goal is to “combat fraud and help victims while ending the practice of regulation by enforcement.”  

Nine former task forces (spoofing and manipulative trading, digital assets, insider trading, Bank Secrecy Act, swaps, foreign corruption, romance scams, cybersecurity and environmental fraud) will now be simplified into two new task forces: (i) Complex Fraud Task Force and (ii) Retail Fraud and General Enforcement Task Force.  

The Complex Fraud Task Force will be led by Deputy Director, Paul Hayeck, with a focus on investigations and litigation “relating to complex fraud and manipulations across all asset classes.”  

Deputy Director, Charles Marvine, will serve as the Acting Chief for the Retail Fraud and General Enforcement Task Force.  As the name suggests, this task force will focus on retail fraud and general enforcement matters involving violations of the Commodity Exchange Act.  

While the mandate of these task forces comes in the form of enforcement, Acting Chairman Pham’s announcement included a stated goal of providing “enhanced governance and oversight of enforcement matters to prevent overreach and enhance consistency, fairness, and due process.”

Consumer Financial Protection Bureau

Staff at the Consumer Financial Protection Bureau (CFPB) allegedly received notice on February 8 and 9 to suspend all CFPB activities.  

Russell Vought, Director of the Office of Management and Budget (OMB) and acting head of the CFPB, reportedly circulated a series of emails, among other things, ordering staff to pause all enforcement actions, to suspend the effective dates of final rules previously issued but not yet effective, and not to approve or issue any proposed or final rules or formal or informal guidance.  Vought also announced via social media platform X that he “notified the Federal Reserve that CFPB will not be taking its next draw of unappropriated funding because it is not ‘reasonably necessary’ to carry out its duties.”  

CFPB Chief Operating Officer, Adam Martinez, reportedly followed suit and instructed all agency staff to stay at home, along with a message that employees may not proceed with any CFPB-related business without clearance from OMB General Counsel, Mark Paoletta.

Takeaway

These policy changes and the dismantling of enforcement units come at a time of widespread reorganization across many federal departments and regulatory agencies.  The Trump Administration has moved quickly to enact its policy goals through both executive orders and internal memos.  These changes may result in fewer white collar enforcement actions in the near future as the Administration focuses on cartels and TCOs and overall deregulation efforts.