DOJ issues new corporate misconduct policy
The DOJ issued a new Corporate Enforcement and Voluntary Self-Disclosure Policy, raising expectations for timely breach reporting and robust internal investigations.
The policy incentivizes companies to self-report misconduct by offering potential benefits such as avoiding a guilty plea or facing reduced penalties. To qualify, companies must voluntarily disclose misconduct, cooperate fully with the DOJ's investigation, and remediate the issues that led to the misconduct. This policy emphasizes the DOJ's focus on individual accountability, requiring companies to identify and provide information about all individuals involved in the misconduct. Failure to do so may result in the company not receiving full credit for its cooperation. The policy also outlines factors the DOJ will consider when evaluating a company’s compliance program, including its design, implementation, and effectiveness. Companies with robust compliance programs that are proactively detecting and addressing misconduct are more likely to receive leniency.
