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DOJ Issues New Guidance on Corporate Compliance Programs
Practical Law Legal Update w-006-5184 (Approx. 6 pages)
DOJ Issues New Guidance on Corporate Compliance Programs
by Practical Law Commercial Transactions
| Published on 22 Feb 2017 • USA (National/Federal) |
The Department of Justice (DOJ) has released new guidance, entitled Evaluation of Corporate Compliance Programs. This guidance covers important topics and provides sample questions that the DOJ's Fraud Section considers when it evaluates the effectiveness of a corporate compliance program.
The Department of Justice (DOJ) recently released new guidance to help businesses and their counsel design and implement corporate compliance policies and procedures, including those related to the Foreign Corrupt Practices Act (FCPA) as well as export and import operations.
Evaluation of Corporate Compliance Programs provides sample questions that the DOJ's Fraud Section has frequently found relevant when it evaluates the adequacy of a corporate compliance program. The existence and effectiveness of a corporation's compliance program is one key factor that prosecutors consider when conducting an investigation of a corporate entity, determining whether to bring charges, and negotiating plea or other agreements.
The sample questions relate to the following 11 topics:
- Analysis and Remediation of Underlying Misconduct.
- Senior and Middle Management.
- Autonomy and Resources.
- Policies and Procedures.
- Risk Assessment.
- Training and Communications.
- Confidential Reporting and Investigation.
- Incentives and Disciplinary Measures.
- Continuous Improvement, Periodic Testing, and Review.
- Third Party Management.
- Mergers and Acquisitions.
Many of these topics already appear in other compliance guidance resources, including:
- A Resource Guide to the US Foreign Corrupt Practices Act, published in 2012 by the DOJ and the Securities and Exchange Commission (SEC) (see Legal Update, New FCPA Guidance Released by the DOJ and SEC).
- The Anti-Corruption Ethics and Compliance Handbook for Business, published in 2013 by the Organization for Economic Cooperation and Development and the United Nations.
For more information on the FCPA, see Practice Note, The Foreign Corrupt Practices Act: Overview.
For more information on drafting internal FCPA policies, see Standard Documents, Foreign Corrupt Practices Act Anti-Corruption Policy and Policy for the Use of Third-Party Agents Outside of the United States.