What's Happening?
The DOJ has revised its Corporate Enforcement Policy (CEP) to incentivize companies to voluntarily self-disclose misconduct. The revisions offer declinations of prosecution for companies that meet specific criteria, absent aggravating circumstances. A new category for 'near miss' disclosures provides non-prosecution agreements with reduced penalties. These changes aim to enhance corporate accountability and proactive compliance.
Why It's Important?
The revised CEP provides greater certainty and transparency for companies considering self-disclosure, potentially leading to increased corporate accountability and reduced penalties for misconduct. This policy shift encourages companies to address compliance issues proactively, which can improve corporate governance and reduce legal risks. The changes may influence corporate decision-making and compliance strategies, impacting the broader business environment.
What's Next?
Companies will need to assess the benefits and risks of self-disclosure under the revised CEP. The DOJ's emphasis on transparency and accountability may lead to more companies voluntarily reporting misconduct. Legal and compliance professionals will play a crucial role in navigating these decisions, potentially shaping corporate governance practices.
