Justice Department Guarantees Non-Prosecution for Self-Reporting Companies

The United States Department of Justice updated its Corporate Enforcement and Voluntary Self-Disclosure Policy in May to strengthen incentives for companies to report internal white-collar crime. The revised policy replaces a previous presumption of declination with a formal guarantee of declination letters—commitments not to prosecute the corporate entity—for companies that voluntarily self-disclose wrongdoing, cooperate with investigations, and disgorge ill-gotten gains.

This shift moves the primary focus of federal enforcement from the corporate entity to the individual wrongdoers. For companies that self-report but do not meet every criterion for a full declination, the department may instead offer reduced fines or non-prosecution agreements.

Matthew Galeotti, head of the department's criminal division, stated that the revisions are designed to maximize enforcement efforts and encourage companies to invest in compliance programs. He noted that the policy allows the division to identify and prosecute crimes that might otherwise remain unknown while holding individual wrongdoers accountable.