Compliance Stuff

Executive Summary The U.S. Department of Justice has expanded the Corporate Enforcement and Voluntary Self-Disclosure Policy (the "CEP") to most DOJ components (except for the Antitrust Division). The CEP provides strong incentives for companies to voluntarily disclose corporate misconduct in hopes of obtaining a full declination of criminal charges, or else a non-prosecution agreement ("NPA"), or at least discretionary lenient treatment. The CEP, while offering compelling cooperation incentives, is not a one-size-fits-all panacea, and s maller businesses in particular would be well advised to approach voluntary self-disclosure decisions with appropriate caution, and with the advice of experienced counsel . Introduction On March 10, 2026, the Criminal Division of the U.S. Department of Justice (the "DOJ") announced the extension of its Corporate Enforcement and Voluntary Self-Disclosure Policy (the "CEP") to all DOJ components (with the exception...

In a prior edition we discussed the Business Case for having a Compliance and Ethics  (“C&E”) program.  Here we review the Legal Case.  The legal case for having an effective C&E program is often what causes companies to initiate C&E programs. The are several pieces to this. Legal requirements In certain risk areas and/or industries the C&E elements may be legally required. Where C&E elements are mandated, not having them can itself be a legal violation, with a range of penalties, including disruptive and expensive investigations, fines, and even prison. These requirements can be highly detailed, such as those seen in the finance sector dealing with risks like anti-money laundering.  There are also requirements related to specific risks that apply across all industries, such as required harassment training.  In the US, for example, this may be imposed at the state or municipal level.  Mandated programs can seem to those in government as...