The DOJ is expanding its whistleblower program to cover areas such as immigration violations, tariff evasion, procurement fraud and activities supporting terrorism and drug cartels. 

The U.S. Department of Justice (DOJ) has unveiled a significant shift in its white-collar crime enforcement priorities, as outlined in remarks by Matthew Galeotti, head of the DOJ's Criminal Division. The DOJ will concentrate on prosecuting the most egregious white-collar crimes that impact national security and the economy, such as fraud against individuals and government programs, and financial crimes facilitating cartels, terrorist organizations and hostile nation states. The new plan, titled "Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime," emphasizes streamlined investigations, increased reliance on whistleblower tips and a recalibration of prosecutorial focus.

Key Takeaways for Global Corporations

Streamlined Investigations with Emphasis on Self-Reporting

The DOJ aims to reduce the duration and collateral consequences of corporate investigations. Companies that voluntarily disclose misconduct and fully cooperate may avoid prosecution altogether. This approach is designed to encourage prompt self-reporting and remediation of corporate wrongdoing. The DOJ’s revised corporate enforcement policy provides that companies that voluntarily self-disclose misconduct, fully cooperate and remediate appropriately—without aggravating circumstances—are now eligible for a declination of prosecution.

Enhanced Whistleblower Incentives

The DOJ is expanding its whistleblower program to cover areas such as immigration violations, tariff evasion, procurement fraud and activities supporting terrorism and drug cartels. Whistleblowers may receive up to 30 percent of recovered funds if their information leads to forfeitures exceeding $1 million. This move is expected to increase the volume of tips and necessitates robust internal compliance mechanisms to detect and address issues proactively.

Reprioritization of Enforcement Areas

The DOJ is narrowing its focus to high-impact areas, including healthcare fraud, trade and customs violations, elder securities fraud and complex money laundering, particularly involving Chinese operations. Conversely, cases involving public corruption and foreign bribery are being deprioritized.

Reduction in Corporate Monitorships

Under the new plan, there is a shift away from imposing corporate compliance monitors unless deemed absolutely necessary. Acknowledging the burdensome nature of compliance monitors, the DOJ will now impose them more selectively. Monitorships will be narrowly tailored, with costs proportionate to the misconduct’s severity and the company’s size and risk profile. Existing monitorships are under review, with potential scope reductions or terminations where appropriate, as evidenced by the early conclusion of monitorships for companies like Glencore.

Practical Steps for Global Corporations

Enhance Internal Compliance Programs

• Conduct comprehensive risk assessments focusing on the DOJ's prioritized enforcement areas—fraud, sanctions and anti-money laundering.
• Implement robust internal controls and monitoring systems to detect and prevent misconduct.
• Ensure compliance programs are adequately resourced and overseers have the authority to act independently.

Encourage and Facilitate Internal Reporting

Promote a culture where employees feel safe to report misconduct internally, allowing the company to address issues proactively.

• Establish or enhance whistleblower programs that encourage employees to report concerns internally.
• Ensure confidentiality and protection against retaliation for whistleblowers.
• Respond promptly and thoroughly to internal reports of misconduct.

Prepare for Potential DOJ Engagement

If potential violations are identified, conduct thorough internal investigations and consider voluntary self-disclosure to the DOJ to benefit from the revised corporate enforcement policy.

• Develop protocols for voluntary self-disclosure of misconduct to the DOJ.
• Maintain documentation of compliance efforts and internal investigations.
• Train legal and compliance teams on the DOJ's new policies and expectations.

Stay Informed on Enforcement Trends

Monitor DOJ announcements and policy changes to remain aligned with enforcement priorities and expectations.

• Stay informed about changes in DOJ enforcement priorities and policies.
• Engage with legal counsel to assess the impact of these changes on your organization.
• Adjust compliance strategies accordingly to align with evolving regulatory landscapes.

The DOJ's revised approach to white-collar crime enforcement underscores the importance of proactive compliance and internal accountability. Global corporations should take immediate steps to align their practices with the DOJ's expectations to mitigate risks and ensure regulatory compliance.

For More Information

If you have any questions about this Alert, please contact Tarsha A. Phillibert, Eric R. Breslin, any of the attorneys in our White-Collar Criminal Defense, Corporate Investigations and Regulatory Compliance Group or the attorney in the firm with whom you are regularly in contact.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.