In Regulatory Wrap for the week to September 5, Aarti Agarwal discusses the DOJ’s efforts to encourage self-disclosure with its new policy.
In this week’s Regulatory Wrap, we examine the Department of Justice’s (DOJ) changes to its Corporate Enforcement and Voluntary Self-Disclosure Policy, which reward firms that disclose financial crime to the regulator and proactively cooperate with investigations.
1. The DOJ has set out a three-part framework for corporate criminal resolutions, underlining that firms who disclose instances of misconduct will be rewarded with mitigation
2. This mitigation could include a declination – meaning the DOJ will not take legal action – a shorter-term non-prosecution agreement, no requirement for a compliance monitorship, or a reduction in financial penalty
3. Firms will only be eligible for these benefits if they self-disclose in good faith, cooperate with investigations, and are involved in a case where misconduct wasn’t egregious
4. Enforcement around misconduct and financial crime is ongoing, though the move toward a culture of cooperation enables firms to minimize potential financial losses if they fall short of compliance
5. Firms that utilize a robust surveillance system to isolate and identify signs of risk early will be prepared to reap self-disclosure benefits
This week’s Regulatory Wrap is brought to you by Global Relay’s Brand & Content Coordinator, Aarti Agarwal.
Firms that are equipped with surveillance technology tools to identify and report financial misconduct early will be in the best position to avoid financial penalties and reputational damage.
