On April 5, 2016, Assistant Attorney General Leslie R. Caldwell (AAG) announced the launch of a one-year pilot program (Pilot Program) intended to “…build on the September 9, 2015 Individual Accountability memorandum issued by the Deputy Attorney General”1 (Yates Memo), which provided guidance to Department of Justice (DOJ) attorneys on holding individual employees accountable for corporate wrongdoing. The Pilot Program provides guidance on the nature and scope of credit that companies can expect to receive under the U.S. Sentencing Guidelines depending on whether they:
Self-disclose FCPA violations
Cooperate with DOJ
Timely and appropriately remediate
The Pilot Program is intended to:
“…promote greater accountability for individuals and companies that engage in corporate crime by motivating companies to voluntarily self-disclose FCPA-related misconduct, fully cooperate with the Fraud Section, and, where appropriate, remediate flaws in their controls and compliance programs. If successful, the pilot program will serve to further deter individuals and companies from engaging in FCPA violations in the first place, encourage companies to implement strong anti-corruption compliance programs to prevent and detect FCPA violations.” 2
In Navigant’s new client alert, our experts highlight key points of the DOJ FCPA Self-reporting Pilot Program and explain the implications of the new guidelines for multinational companies. Please click here to read the full alert.
1. DOJ Principles Regarding Corporate Cooperation and Individual Accountability for Corporate Wrongdoing, Ellen Zimiles and Jay Perlman, Navigant November 2015 http://www.navigant.com/~/media/WWW/Site/Insights/GIC/GIC_YatesMemoClientAlert_TL_1115_FINAL.PDF.
2. U.S. Department of Justice – Fraud Section, Memorandum from the Chief of the DOJ Fraud Section Andrew Weissmann, The Fraud Section’s Foreign Corrupt Practices Act Enforcement Plan and Guidance, April 5, 2016, (Pilot Program), available at https://www.justice.gov/opa/file/838386/download. See pg. 2.