Corporate Enforcement Policy Updates: A Spoonful of Sugar or Just More Medicine?

Corporate Compliance Insights

By adding incentives to encourage self-disclosure of corporate misconduct, the DOJ signaled a major change in its approach. And while many of the changes are welcome, Blank Rome’s Inbal P. Garrity and Amelia Clegg wonder if the revisions are sweet enough.

The DOJ’s Criminal Division may not have had a change of heart when it comes to corporate criminal enforcement, but it arguably has had a change of approach. In a January speech at Georgetown University, Assistant Attorney General Kenneth A. Polite Jr. announced revisions to the Criminal Division’s corporate enforcement policy (CEP), which essentially amount to more incentives for corporations to self-police and self-report. These changes, the first since 2017, apply to all corporate criminal matters handled by the Criminal Division, not just FCPA cases, to which the prior CEP applied.

The new revisions to the CEP provide greater incentives for companies to self-disclose, fully cooperate and timely and appropriately remediate. However, as is often the case, the devil is in the details — and the details of how the CEP will be applied remains unknown.

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“Corporate Enforcement Policy Updates: A Spoonful of Sugar or Just More Medicine?” by Inbal P. Garrity and Amelia Clegg was published in Corporate Compliance Insights on March 8, 2023. Reprinted with permission.

For more information on the CEP revisions, please read our White Collar Defense & Investigations alert, “We Have Ways of Making You Talk,” New DOJ Incentives for Self-Reporting Corporate Misconduct (January 2023).