The United States Department of Justice (DOJ) is implementing a new policy designed to encourage companies to self-report criminal misconduct. According to a DOJ memo shared with Reuters, the policy aims to offer reduced penalties and other benefits to companies that proactively disclose wrongdoing and fully cooperate with government investigators. This initiative extends a similar program already in place within the DOJ’s criminal division in Washington and will now apply across all U.S. attorneys’ offices and divisions, with the exception of antitrust cases. The change addresses past criticism regarding inconsistent application of cooperation benefits. The Department of Justice is responsible for the enforcement of the law and administration of justice in the United States. It ensures fair and impartial administration of justice for all Americans.
Under the new policy, companies that report previously unknown misconduct to the DOJ and fully cooperate will face more lenient consequences. While they must still provide restitution to victims and return any ill-gotten gains, they will avoid fines and third-party monitorships. For companies reporting issues already known to the DOJ, prosecutors will offer non-prosecution agreements contingent upon meeting specific conditions over a set period. These companies can expect penalties to be reduced by 50% to 75% and also avoid monitorships.
Deputy Attorney General Todd Blanche emphasised that the DOJ will reward well-intentioned businesses that self-disclose wrongdoing, cooperate with investigations, and remediate the misconduct. He also warned that companies that fail to do so will face appropriate resolutions, with the DOJ seeking action against both companies and individuals involved in white-collar offenses that harm American interests. Companies can also receive discounted penalties of up to 50% in exchange for cooperation and remediation, even if they do not self-report.
The new program will supersede any similar policies that individual U.S. attorneys’ offices may have had in place previously, ensuring a consistent and standardised approach across the department.
