APPENDIX 11. United States sentencing guidelines: effective compliance and ethics programs

• Author: Robert W. Tarun
• Pages: 617-622

APPENDIX 11

United States Sentencing

Guidelines: Effective

Compliance and Ethics

Programs

CHAPTER 8–PART B—REMEDYING HARM FROM CRIMINAL

CONDUCT, AND EFFECTIVE COMPLIANCE AND ETHICS

PROGRAM

§ 8b2.1 Effective Compliance and Ethics Program

(a) To have an effective compliance and ethics program, for purposes of subsection

(f) of § 8C2.5 (Culpability Score) and subsection (c)(1) of §8D1.4 (Recommended

Conditions of Probation—Organizations), an organization shall—

(1) exercise due diligence to prevent and detect criminal conduct; and

(2) otherwise promote an organizational culture that encourages ethical con-

duct and a commitment to compliance with the law.

Such compliance and ethics program shall be reasonably designed, implemented

and enforced so that the program is generally effective in preventing and detect-

ing criminal conduct. The failure to prevent or detect the instant offense does

not necessarily mean that the program is not generally effective in preventing

and detecting criminal conduct.

(b) Due diligence and the promotion of an organizational culture that encourages

ethical conduct and a commitment to compliance with the law within the meaning

of subsection (a) minimally require the following:

(1) The organization shall establish standards and procedures to prevent and

detect criminal conduct.

(2)(A) The organization’s governing authority shall be knowledgeable

about the content and operation of the compliance and ethics program

and shall exercise reasonable oversight with respect to the implementation

and effectiveness of the compliance and ethics program.

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