New DOJ Policy Grants Companies Expanded Credit for Voluntary Disclosure of Criminal Misconduct

March 08, 2018

In a development with potentially far-reaching consequences for white collar enforcement, the U.S. Department of Justice (DOJ) Criminal Division has expanded the opportunity for companies to earn credit for voluntary disclosure of criminal misconduct. The policy change may encourage voluntary disclosure consistent with prior DOJ initiatives, which have sought to increase corporate disclosure of apparent Foreign Corrupt Practices Act (FCPA) violations.

In a March 1, 2018 speech at the American Bar Association National Institute on White Collar Crime in San Diego, Acting DOJ Criminal Division Head John Cronan announced that the Criminal Division will begin to apply the FCPA Corporate Enforcement Policy (CEP) as “nonbinding guidance” outside the FCPA context. Though Mr. Cronan, whose announcement was affirmed the following day by Deputy Attorney General Rod Rosenstein, emphasized a presumption of declination of charges in response to adequate disclosures, the CEP and the new policy appear to offer the possibility of resolutions more akin to non-prosecution agreements with conditions. Which form these future DOJ resolutions primarily take will determine the true significance of the recent announcement.

Read, "New DOJ Policy Grants Companies Expanded Credit for Voluntary Disclosure of Criminal Misconduct"