On April 5, 2016, the DOJ Criminal Division's Fraud Section released its FCPA Enforcement Plan and Guidance Memorandum (the "Fraud Section Memo"). The plan builds on the DOJ's recent enhancements to its FCPA enforcement efforts and also includes the launch of a new, one-year FCPA Pilot Program. Intended to motivate companies to voluntarily self-disclose misconduct, the Pilot Program provides guidance on the resolution of FCPA cases.
The Fraud Section Memo explains that companies that voluntarily and adequately self-disclose, fully cooperate, and timely remediate misconduct may receive credit of up to a 50 percent reduction off the U.S. Sentencing Guidelines fine range. Additionally, pursuant to the Pilot Program, the DOJ will not require the appointment of a monitor for cooperators where "a company has, at the time of resolution, implemented an effective compliance program." In cases of complete cooperation, the DOJ will consider a declination of prosecution. Full cooperation without voluntary self-disclosure will limit a company to no more than a 25 percent reduction. The Fraud Section Memo makes it clear that it does not supplant the USAM Principles, but rather sets forth circumstances in which a company can receive additional credit in FCPA matters.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.