On April 5, 2016, the Fraud Section of the Department of Justice (DOJ) announced a pilot program offering potential leniency to corporations that self-report Foreign Corrupt Practices Act (FCPA) violations. The program aims to facilitate the prosecution of individuals by giving corporations an incentive to self-report employee involvement in bribing of foreign officials. The program thus furthers the goal of the Yates Memo, released by the DOJ in September 2015, which announced the department’s intention to hold more individuals accountable for corporate misconduct.
Although intended to incentivize self-reporting, the program has limits and collateral requirements for credit that should cause corporate counsel serious concerns. The leniency offered under the program only applies to prosecutions by the Fraud Section’s FCPA Unit and does not prevent prosecutions by other DOJ sections, other federal or state agencies or foreign authorities. Given that FCPA violations are international in scope, and almost always involve conduct that could be prosecuted under multiple legal theories, corporations must consider potential consequences before attempting to take advantage of the program.
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