U.s. Justice Department Announces Substantial Revisions to Corporate Enforcement Policy

• Jurisdiction: United States,Federal
• Citation: Vol. 1 No. 1
• Publication year: 2023

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Andrew S. Boutros, David N. Kelley, Andrew J. Levander, Vincent H. Cohen Jr., and D. Brett Kohlhofer ^*

In this article, the authors review new guidelines announced recently by the U.S. Department of Justice for prosecutors to use when determining how to assess and treat corporate offenders.

Deputy Attorney General Lisa Monaco of the U.S. Department of Justice (the "Department") recently announced several new guidelines for prosecutors to use when determining how to assess and treat corporate offenders.

First, the guidelines emphasize individual accountability. The Department is laser-focused on bringing criminal cases against individuals who participate in alleged criminal conduct in the scope of their employment—and doing so quickly. To achieve this result, the Department will require cooperating companies to prioritize prompt and comprehensive disclosures regarding executives and other individual actors.

Second, reiterating its continued focus on corporate recidivism, the Department has clarified and standardized how prosecutors should evaluate past corporate misconduct.

Third, the Department has emphasized the importance and concrete benefits of making a voluntary self-disclosure of potential criminal wrongdoing.

Fourth, the just-announced guidelines lay out revisions to the use and selection of compliance monitors.

Fifth, new Department policies encourage companies to leverage compensation arrangements to promote compliance and deter improperly risky conduct.

Background

In September 2022, Deputy Attorney General Lisa Monaco announced a series of revisions to Department policy addressing

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how federal prosecutors will evaluate and treat corporate defendants. Shortly thereafter, the Department published a memorandum setting out the new policies in further detail (the "Monaco Memorandum").

Incorporating feedback from the Corporate Crime Advisory Group, which Deputy Attorney General Monaco formed last year, the new policies re-emphasize this Justice Department's focus on corporate crime enforcement. The announcement also underscores a particular focus on individual accountability and represents the Department's clear and unmistakable attempt to incentivize greater corporate participation in its now-expanded voluntary self-disclosure program.

Selected Highlights of the Policy Revisions for In-House Legal and Compliance Professionals

Expanded, Department-Wide Voluntary Self-Disclosure Program

Citing success with its existing voluntary...