What's Happening?
The Department of Justice (DOJ) has announced a new Department-wide Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP) on March 10, 2026. This policy is designed to provide predictability for companies and their legal counsel by applying
uniformly across all corporate criminal matters handled by the DOJ, with the exception of antitrust violations. The CEP supersedes all existing component-specific or U.S. Attorney’s Office-specific corporate enforcement policies. It mirrors the DOJ’s Criminal Division’s CEP, focusing on incentives for corporate self-disclosure, cooperation, and remediation. The policy outlines that companies meeting certain criteria will receive a declination, and introduces the concept of 'near miss' voluntary self-disclosures. The CEP aims to drive early self-disclosure of criminal conduct, promote timely enforcement, reduce harm, and ensure consistency across the DOJ.
Why It's Important?
The introduction of the CEP is significant as it standardizes corporate enforcement practices across the DOJ, potentially impacting how companies approach self-disclosure of misconduct. By offering incentives such as reduced penalties for voluntary self-disclosure, the policy encourages companies to report misconduct proactively. This could lead to increased transparency and accountability within corporate practices. The policy also aims to streamline enforcement processes, which may result in more efficient handling of corporate criminal matters. Companies that comply with the CEP may benefit from reduced penalties, while those that do not may face stricter enforcement actions. The policy's emphasis on transparency and fairness could influence corporate governance and compliance strategies across various industries.
What's Next?
The implementation of the CEP will likely lead to adjustments in corporate compliance programs as companies seek to align with the new policy to benefit from its incentives. Legal and compliance departments may need to enhance their internal reporting mechanisms to ensure timely self-disclosure. The interaction between the CEP and other regional policies, such as the Southern District of New York’s Corporate Enforcement Program, remains to be seen, potentially leading to further clarifications or adjustments. Companies will need to monitor how the DOJ applies the CEP in practice, particularly in cases involving 'near miss' disclosures, to understand the full implications of the policy on their operations.
