In Regulatory Wrap for the week to May 23, Ryan Sheridan uncover how the DOJ’s updated white-collar enforcement plan repositions self-disclosure as a commercial advantage.
In this week’s Regulatory Wrap, we discuss updates to the Department of Justice’s (DOJ) white-collar corporate enforcement policy. These updates mark a material change in the regulator’s approach to self-disclosure and introduce significant benefits for those who detect and report misconduct early.
1. Under the DOJ’s updated Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP), firms who voluntarily self-disclose, fully cooperate, effectively remediate, and have no aggravating circumstances, will no longer be required to enter a criminal resolution
2. Any company who is willing to comply but is concerned about aggravating circumstances may still receive leniency based on the severity of circumstances
3. Even companies that have not disclosed themselves quickly enough could still receive benefits, such as a non-prosecution agreement, reduction of criminal fines, or no monitor
4. The DOJ also announced amendments to its monitor selection process, stating that firms may see less monitors going forward
5. While self-disclosure may have been seen as a last-ditch effort previously, these updates present firms with an opportunity to avoid stringent enforcements entirely by actively monitoring for misconduct and escalating violations accordingly
This episode is brought to you by our Senior Manager, Regulatory Intelligence, Ryan M. Sheridan.
The DOJ has significantly elevated the benefits of self-disclosure by providing firms an ability to avoid stringent enforcements – given that they’re maintaining proactive communications oversight and spotting misconduct before the regulator.
