{"id":120022,"date":"2025-11-12T15:32:59","date_gmt":"2025-11-12T15:32:59","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=120022"},"modified":"2025-12-17T10:06:39","modified_gmt":"2025-12-17T10:06:39","slug":"united-states-white-collar-crime","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/united-states-white-collar-crime\/","title":{"rendered":"United States: White Collar Crime"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-120022","comparative_guide","type-comparative_guide","status-publish","hentry","guides-white-collar-crime","jurisdictions-united-states"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">MoloLamken LLP<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/06\/molo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">MoloLamken LLP<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2020\/06\/molo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of White Collar Crime laws and regulations applicable in United States<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key financial crime offences applicable to companies and their directors and officers? (E.g. Fraud, money laundering, false accounting, tax evasion, market abuse, corruption, sanctions.) Please explain the governing laws or regulations.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the United States there are numerous financial crime offenses applicable to companies and their directors and officers. In the federal code, the key offenses include:<\/p>\n<h4>Crimes related to money laundering and terrorist financing activities, including those set forth at the following statutes:<\/h4>\n<ol>\n<li>18 U.S.C. \u00a7 1956(a)(1) (domestic money laundering)<\/li>\n<li>18 U.S.C. \u00a7 1956(a)(2) (international money laundering)<\/li>\n<li>18 U.S.C. \u00a7 1957(a) (transacting in proceeds of specified unlawful activity)<\/li>\n<li>18 U.S.C. \u00a71960(b) (money services business violations)<\/li>\n<li>31 U.S.C. \u00a7\u00a7 5321-5322 (willful violations of the Bank Secrecy Act)<\/li>\n<li>31 U.S.C. \u00a7 5332 (bulk cash smuggling), providing material support to terrorists 18 U.S.C. \u00a7 2339A, and providing material support or resources to designated foreign terrorist organizations 18 U.S.C. \u00a7 2339B.<\/li>\n<\/ol>\n<h4>Crimes related to fraud, including those set forth at the following statutes:<\/h4>\n<ol>\n<li>18 U.S.C. \u00a7157 (bankruptcy fraud)<\/li>\n<li>18 U.S.C. \u00a7 1341 (mail fraud)<\/li>\n<li>18 U.S.C. \u00a7 1343 (wire fraud)<\/li>\n<li>18 U.S.C. \u00a7 1344 (bank fraud)<\/li>\n<li>18 U.S.C. \u00a7 1347 (health care fraud)<\/li>\n<li>15 U.S.C. \u00a7 78ff(a) and 15 U.S.C. \u00a7 77(x) (securities fraud)<\/li>\n<li>26 U.S.C. \u00a7\u00a7 7201, 7206 (tax fraud)<\/li>\n<li>18 U.S.C. \u00a7 656 (embezzlement)<\/li>\n<li>18 U.S.C. \u00a7 873 (blackmail)<\/li>\n<li>18 U.S.C. \u00a7 1001 (false statements in matters within the jurisdiction of the executive, legislative, or judicial branch of the U.S. Government)<\/li>\n<li>18 U.S.C. \u00a7 1014 (false statements to influence certain financial institutions and agencies).<\/li>\n<\/ol>\n<h4>Crimes related to corruption, including those set forth at the following statutes:<\/h4>\n<ol>\n<li>15 U.S.C. \u00a7 78dd-1, et seq. (the Foreign Corrupt Practices Act, which punishes the bribery of foreign officials)<\/li>\n<li>18 U.S.C. \u00a7 1352 (the Foreign Extortion Prevention Act, which punishes foreign officials who solicit or receive bribes<\/li>\n<li>18 U.S.C. \u00a7 201 (bribery of public officials and witnesses)<\/li>\n<li>18 U.S.C. \u00a7 215 (bribery of financial institution employees)<\/li>\n<li>18 U.S.C. \u00a7 666 (theft or bribery concerning programs receiving funds from the U.S. Government)<\/li>\n<li>18 U.S.C. \u00a7 872 (extortion by public officers)<\/li>\n<li>18 U.S.C. \u00a7 1346 (honest services fraud).<\/li>\n<\/ol>\n<h4>Crimes related to market integrity, including those set forth at the following statutes:<\/h4>\n<ol>\n<li>15 U.S.C. \u00a7 78i(a)) (prohibits market manipulation)<\/li>\n<li>15 U.S.C. \u00a7 78j and Rule 10b-5 (prohibits use of deceptive devices, which covers insider trading)<\/li>\n<li>18 U.S.C. \u00a7 1348 (securities and commodities fraud)<\/li>\n<\/ol>\n<h4>Crimes related to economic sanctions, including those set forth at the following statutes:<\/h4>\n<ol>\n<li>50 U.S.C. \u00a7\u00a7 1701\u20131707 (the International Emergency Economic Powers Act, which punishes sanctions evasion)<\/li>\n<\/ol>\n<p>Federal criminal law is enforced by the U.S. Department of Justice. But each state also has its own body of laws covering financial crimes, which are enforced by District Attorneys and State Attorneys General.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can corporates be held criminally liable? If yes, how is this determined\/attributed?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, corporations can be held liable for criminal offenses. Depending on the statute at issue, corporations can be explicitly liable on their own or liable in conjunction with their agents.<\/p>\n<p>Even where a corporate entity is not expressly covered by a statute\u2019s entity definition, under federal law (and the common law doctrine of <em>respondeat superior<\/em>), a corporation can be held criminally liable based on the actions of its directors, officers, employees, or other agents if those actions were within the scope of the agent\u2019s duties and benefited or sought to benefit the corporation.<\/p>\n<p>The U.S. Department of Justice evaluates whether to charge a corporation with criminal offenses by consulting a series of guidance found within the \u201cPrinciples of Federal Prosecution of Business Organizations\u201d contained within in the U.S. Department of Justice\u2019s Manual. Justice Manual (JM), \u00a7\u00a79-27.000 et seq., and \u00a7\u00a79-28.000 et seq., available at https:\/\/www.justice.gov\/jm\/title-9-criminal.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the commonly prosecuted offences personally applicable to company directors and officers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Absent clear legislative intent to exclude corporate agents from personal responsibility for acts they commit, corporate directors and officers cannot use the corporate entity as a shield against liability for their crimes. Accordingly, directors and officers may be held criminally liable for committing any of the offenses listed in response to question number 1. Additionally, these individuals may be prosecuted for conspiring to commit, and\/or aiding and abetting, the crimes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the lead prosecuting authorities which investigate and prosecute financial crime and what are their responsibilities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>At the federal level, the following Government agencies often participate in the investigation and prosecution of financial crimes in the United States:<\/p>\n<ol>\n<li>Department of Justice (\u201cDOJ\u201d), which includes the U.S. Attorney\u2019s Office (\u201cUSAO\u201d) in each federal district and the Federal Bureau of Investigation (\u201cFBI\u201d), has the responsibility to investigate and prosecute federal crimes.<\/li>\n<li>Department Homeland Security (\u201cDHS\u201d), through divisions such as Homeland Security Investigations (\u201cHSI\u201d), U.S. Immigration and Custom Enforcement (\u201cICE\u201d), and U.S. Customs and Border Protection (\u201cCBP\u201d), investigates crimes related to cross-border criminal activities that threaten the U.S. security and economy, including trade-based money laundering and other financial crimes, intellectual property theft, and customs fraud.<\/li>\n<li>The U.S. Secret Service (\u201cUSSS\u201d) investigates crimes against the U.S. financial system, particularly involving currency and cyberspace.<\/li>\n<li>The Food and Drug Administration (\u201cFDA\u201d) investigates crimes related to prescription drugs, food safety, and medical devices.<\/li>\n<li>The Drug Enforcement Administration (\u201cDEA\u201d) investigates financial crimes related to controlled substances.<\/li>\n<li>The Internal Revenue Service (\u201cIRS\u201d) investigates violations of the federal tax laws.<\/li>\n<li>The U.S. Department of the Treasury\u2019s Financial Crimes Enforcement Network (\u201cFinCEN\u201d), receives, analyzes, and disseminates financial transactions data for law enforcement purposes in the United States.<\/li>\n<li>Securities and Exchange Commission (\u201cSEC\u201d) investigates violations of federal securities laws and the associated regulations. It can initiate civil enforcement actions and\/or make referrals to the DOJ for criminal prosecution.<\/li>\n<li>The Commodity Futures Trading Commission (\u201cCFTC\u201d) investigates violations of the Commodity Exchange Act and its regulations. It can initiate civil enforcement actions and\/or make referrals to the DOJ for criminal prosecution.<\/li>\n<li>The Federal Trade Commission (\u201cFTC\u201d) investigates violations of the Federal Trade Commission Act. It can initiate civil enforcement actions and\/or make referrals to the DOJ for criminal prosecution.<\/li>\n<\/ol>\n<p>Each state also has its own investigative agencies and the lead prosecuting authorities are the District Attorneys and State Attorneys General in each jurisdiction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which courts hear cases of financial crime? Are they determined by tribunals, judges or juries?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the United States, both federal courts and state courts have jurisdiction to preside over prosecutions of financial crimes.<\/p>\n<p>If a prosecution of a financial crime proceeds to trial, a defendant is entitled to a trial by jury pursuant to the U.S. Constitution. A criminal defendant, however, may waive the right to a jury trial and seek a bench trial before a judge, where the judge will be the ultimate finder of fact.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How do the authorities initiate an investigation? (E.g. Are raids common, are there compulsory document production or evidence taking powers?)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>An investigation is usually initiated when a law enforcement agency receives credible information of a violation of criminal law. Such information may come from a human source (like the victim, a witness, or an informant), a written report (like a suspicious activity report issued by a financial institution), or even from the media.<\/p>\n<p>Law enforcement may compel the production of information, documents, and testimony relevant to the case through subpoenas, which in the context of criminal investigations are typically issued by Grand Juries.<\/p>\n<p>Law enforcement may also obtain search warrants, which must be authorized by a judicial authority, to search designated premises or databases and seize specific items, documents, or data.<\/p>\n<p>Law enforcement sometimes conduct nationwide \u201ctakedowns\u201d targeting certain offenses. For example, in 2025, the Department of Justice coordinated with federal and local law enforcement to charge hundreds of individuals with health care fraud and related offenses in a single day.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What powers do the authorities have to conduct interviews?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Law enforcement may interview a person believed to possess information relevant to the matter under investigation. Law enforcement may ask a person to speak voluntarily or seek to compel answers through the use of a subpoena, which requires the individual to appear and answer questions before the Grand Jury. However, as described in the next answer, the individual being questioned always has the ability to invoke their U.S. Constitutional right to decline to answer any question that might incriminate them, irrespective of whether they are answering questions voluntarily or have been compelled to appear by a Grand Jury. Beyond formal powers, authorities have informal power to encourage a person to agree to an interview by noting the advantages of cooperation and other means.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What rights do interviewees have regarding the interview process? (E.g. Is there a right to be represented by a lawyer at an interview? Is there an absolute or qualified right to silence? Is there a right to pre-interview disclosure? Are interviews recorded or transcribed?)<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The U.S. Constitution sets forth that \u201cno person . . . shall be compelled in any criminal case to be a witness against himself.\u201d In other words, interviewees always maintain the right to decline to answer any questions that might incriminate them or to decline to answer questions without a lawyer present.<\/p>\n<p>If a custodial interview is being conducted, law enforcement must advise interviewees at the outset of their Constitutional right to remain silent and decline to answer questions, and the right to have an attorney present. After law enforcement advises the interviewee of their rights, the interviewee can either waive these rights and continue with the interview, or they can invoke their rights to silence and to an attorney.<\/p>\n<p>In the financial crimes context, many individuals invoke their rights. Once these rights are invoked, law enforcement must immediately stop questioning the individual and must not re-initiate questioning until counsel has been made available and is present.<\/p>\n<p>There is no right to pre-interview disclosure of evidence.<\/p>\n<p>Interviews may be recorded or transcribed, but there is no federal constitutional or statutory requirement to a recorded or transcribed interview with law enforcement. Some states like New York require law enforcement to record the entire interrogation for serious felonies, but not every state requires this. Some law enforcement agencies regularly record interviews and interrogations with people even when they are not statutorily required to do so, but this varies among states and among individual law enforcement agencies.<\/p>\n<p>In practice, when the interviews are not recorded, law enforcement will likely take written notes during interviews.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do some or all the laws or regulations governing financial crime have extraterritorial effect so as to catch conduct of nationals or companies operating overseas?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, laws governing financial crime in the United States can have extraterritorial effect. In fact, certain criminal statues expressly proscribe conduct that occurs outside of the United States, such as the anti-bribery provisions under the FCPA and FEPA. However, due process requires U.S. authorities to establish that the crime has some nexus to the United States. Whether a given statute has extraterritorial effect is often a complicated and fact-dependent question.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the authorities commonly cooperate with foreign authorities? If so, under what arrangements?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>U.S. authorities and foreign authorities frequently and commonly cooperate in the investigation and prosecution of financial crimes. For instance, U.S. authorities regularly obtain information overseas through numerous mutual legal assistance treaties (\u201cMLAT\u201d) that have been ratified by the U.S. The MLATs also provide means for seizing assets located in other jurisdictions. Additionally, the U.S. is a party to the Inter-American Convention Against Corruption, which provides for evidence sharing between 35 countries in North and South America.<\/p>\n<p>Further, FinCEN works closely with the Financial Intelligence Units (\u201cFIU\u2019s\u201d) of other countries to share, analyze, and disseminate information coming from suspicious activity reports prepared by financial institutions around the world.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the rules regarding legal professional privilege? What, if any, material is protected from production or seizure by financial crime authorities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are two relevant professional privileges that protect confidential communication between an attorney and their client from disclosure to an outside party: the attorney-client and work product privileges. The attorney-client privilege occurs where a confidential communication takes place between an attorney and client that have established a relationship for the procurement of legal advice and the communication is made for the purpose of seeking or providing legal advice. That privilege extends to the materials prepared by the attorney in preparation of litigation. This is often referred to as the work product privilege.<\/p>\n<p>One notable exclusion to these privilege doctrines is the crime-fraud exception. This exclusion extends to instances where the client seeks legal advice in furtherance of committing a crime or fraud. The rationale underlying this rule is that public trust would be seriously undermined if lawyers were allowed to help their clients commit crime and maintain a shield of secrecy around all communications in that furtherance.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What rights do companies and individuals have in relation to privacy or data protection in the context of a financial crime investigation?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Unlike some other countries that provide broad data privacy protection for companies and their employees, there is not a similar level of protection in the United States. In this regard, U.S. law enforcement has extensive investigatory powers and will generally be able to access the documents, electronic material and data of companies and their employees, though some laws like the Stored Communications Act impose certain procedural requirements before authorities can access the content of certain electronic communications.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a doctrine of successor criminal liability? For instance in mergers and acquisitions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, federal and state law generally enforce the doctrine of successor criminal liability in the context of financial crime. Accordingly, a successor corporation can be held derivatively liable for the criminal acts of the predecessor corporation, though statutes of limitations may restrict liability in practice.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What factors must prosecuting authorities consider when deciding whether to charge?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The U.S. Department of Justice\u2019s Principles of Federal Prosecution advise federal prosecutors to weigh the following considerations in deciding whether to charge individuals: federal law enforcement priorities; the nature and seriousness of the offense; the deterrent effect of prosecution; the person\u2019s culpability in connection with the offense; the person\u2019s history of criminal activity; the person\u2019s willingness to cooperate in the investigation or prosecution of others; person\u2019s personal circumstances, interests of any victims, and the probable sentence or other consequences if the person is convicted. JM, \u00a7 9-27.230.<\/p>\n<p>State prosecutors consider similar factors when deciding whether to bring criminal charges against an individual.<\/p>\n<p>When determining whether to file criminal charges against a corporate entity, the U.S. Department of Justice recommends that its prosecutors consider the same factors in the context of individuals as well as some additional factors, including: (1) the pervasiveness of the offense; (2) the adequacy of applicable compliance programs; (3) the voluntary disclosure of wrongdoing; (4) the remedial actions taken in response to the wrongdoing; (5) collateral consequences to innocent third parties; (6) the adequacy of prosecution of individuals responsible; and (7) the adequacy of alternate remedies such as civil or regulatory enforcement actions. JM \u00a7 9-28.300.<\/p>\n<p>Failure of prosecutors to abide by those factors does not create a basis to challenge an indictment, however, or create any rights that a defendant may seek to enforce against the government.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the evidential standard required to secure conviction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>To secure a criminal conviction, the government must prove the allegations of criminal activity \u201cbeyond a reasonable doubt.\u201d The defendant is presumed innocent until proven guilty, and the burden of proof is on the government.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a statute of limitations for criminal matters? If so, are there any exceptions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The statute of limitations for most federal crimes is five years. <em>See<\/em> 18 U.S.C. \u00a7 3282. However, some crimes have longer statutes of limitations such as tax crimes (six-years), major fraud against the U.S. government (seven years), or crimes involving banks and other financial institutions (10 years). Also, the statute of limitations may be \u201ctolled\u201d (legally suspended): (i) during periods of fugitivity; (ii) on application of the United States, during the pendency of an official request to a foreign court or authority to obtain evidence located in a foreign country; or (iii) in the absence of a legal provision if the Government and the defendant enter into a voluntary tolling agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any mechanisms commonly used to resolve financial crime issues falling short of a prosecution? (E.g. Deferred prosecution agreements, non-prosecution agreements, civil recovery orders, etc.) If yes, what factors are relevant and what approvals are required by the court?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The U.S. has mechanisms to resolve financial crime issues falling short of a prosecution. The most common vehicles are non-prosecution agreements (\u201cNPAs\u201d) and deferred prosecution agreements (\u201cDPAs\u201d). Under an NPA, the DOJ agrees not prosecute the target of the investigation if the target agrees to cooperate with the Government and to implement remedial and\/or compliance measures. The NPA is not filed with the court, and instead is maintained between the parties.<\/p>\n<p>Under a DPA, the Government files a charging document with the Court, and it simultaneously requests that the prosecution be postponed for the purpose of allowing the defendant to demonstrate good conduct. DPAs generally require the defendant to pay a monetary penalty, waive the statute of limitations, cooperate with the Government, admit the facts underlying the criminal charges, and implement compliance and\/or remediation commitments. If the defendant complies with the DPA, the Government subsequently moves to dismiss the criminal charges or civil enforcement action.<\/p>\n<p>In deciding to enter into a DPA or a NPA with the target of the criminal investigation, federal prosecutors will take into consideration the factors set forth by the Principles of Federal Prosecution (see answer to question 14 above).The Government does not require the court\u2019s approval for entering into an NPA.\u00a0 Since a DPA is filed with the court, court approval is required, but the approval is generally limited to ensuring the agreement is fair and legally sound, not to scrutinize the Government\u2019s decision to offer the deal.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a mechanism for plea bargaining?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Plea agreements require the defendant to accept all or some of the criminal charges, in exchange of one of the following actions of the Government: \u201c(A) not bring, or will move to dismiss, other charges; (B) recommend, or agree not to oppose the defendant\u2019s request, that a sentence or sentencing range is appropriate or that a provision of the Sentencing Guidelines, or policy statement, or sentencing factor does or does not apply (such a recommendation or request does not bind the court); or (C) agree that a specific sentence or sentencing range is the appropriate disposition of the case, or that a provision of the Sentencing Guidelines, or policy statement, or sentencing factor does or does not apply (such a recommendation or request binds the court once the court accepts the plea agreement).\u201d Fed. R. Crim. Pro. 11(c).<\/p>\n<p>Some states allow judges to participate in plea negotiations, but the federal rules strictly forbid any judicial participation in plea negotiations.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there any obligation to disclose discovered misconduct to prosecuting authorities, or any benefit to making a voluntary disclosure?  Is there an established route or official guidance for making such disclosures?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The U.S. Bank Secrecy Act (\u201cBSA\u201d) requires U.S. financial institutions to assist U.S. government agencies to detect and prevent money laundering. Specifically, the BSA requires financial institutions to report to FinCEN suspicious activity that might signify money laundering, tax evasion, sanctions evasion, or other criminal activities.<\/p>\n<p>Additionally, U.S. Government agencies often reward voluntary self-disclosure of criminal conduct with declinations to pursue enforcement actions, and\/or reduction in the civil or criminal penalty that would otherwise be sought. For example, the U.S. Department of Justice has implemented the Corporate Enforcement Policy \u201cCEP\u201d to provide incentives and benefits to companies that voluntarily self-disclose misconduct, fully cooperate, and undertake remedial actions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What rules or guidelines determine sentencing? Are there any leniency or discount policies? If so, how are these applied?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the federal system, courts determine criminal sentences based on the Federal Sentencing Guidelines, which are non-binding rules established by the U.S. Sentencing Commission in an attempt to create a uniform sentencing policy nation-wide and calibrate sentences depending upon factors related both to the subjective guilt of the defendant and to the actual harm caused by the crime. The Guidelines contain provisions that recommend leniency for particular circumstances, such as early acceptance of responsibility or substantial assistance to law enforcement. The Guidelines also contain provisions that recommend increased punishment for other circumstances.<\/p>\n<p>While the Guidelines are not mandatory, federal judges must consider them when deciding a criminal defendant\u2019s sentence. Accordingly, when a judge determines within his or her discretion to depart from the Guidelines, the judge must explain what factors warranted the increased or decreased sentence.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are compliance procedures evaluated by the prosecuting authorities and how can businesses best protect themselves?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>U.S. financial crime authorities generally evaluate if the organization has used a \u201crisk-based approach\u201d to design, implement, and periodically update compliance programs. Accordingly, the compliance program of each organization should be different and tailored to the company\u2019s products, clients, and to the risks associated to the jurisdictions in which the company has operations. Nevertheless, U.S. authorities typically expect organization to develop the following essential components of compliance:<\/p>\n<ol>\n<li>Management Commitment: ensuring senior management commitment to the company\u2019s compliance with U.S law.<\/li>\n<li>Risk Assessment: conducting frequent risk assessments to identify and mitigate specific risks.<\/li>\n<li>Internal Controls: developing and deploying policies and procedures to identify, interdict, escalate, report, and maintain records pertaining to activity prohibited by U.S law.<\/li>\n<li>Testing and Audit: identifying and correcting weaknesses and deficiencies.<\/li>\n<li>Training: ensuring all relevant personnel are provided tailored training on the pertinent U.S law.<\/li>\n<\/ol>\n<p>U.S. authorities generally ask three questions in evaluating a corporation\u2019s compliance program: (1) is it well designed? (2) is it being applied in good faith? and (3) does it work in practice?<\/p>\n<p>Aside from designing, implementing, and updating Sanctions\/AML\/FCPA compliance programs, a company should carefully review any transaction involving high-risk persons or jurisdictions to confirm whether the U.S. Government\u2019s authorization is required in order to protect themselves from committing financial crimes. If necessary, companies should request the Government\u2019s interpretative guidance when available before moving forward with the transaction.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What penalties do the courts typically impose on individuals and corporates in relation to the key offences listed at Q1?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Courts typically impose jail time, financial penalties, disgorgement, or a combination of the three for individuals convicted of committing a financial crime. For corporations convicted of such an offence, courts generally impose financial penalties, disgorgement, or a combination of the two. Many of the statutes have \u201cstatutory maximum\u201d sentences that a court cannot exceed. Those maximums, however, are often as high as 30 years.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What rights of appeal are there?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In the federal system and in most states and the federal system, trial court decisions may be appealed to an appellate court as a matter of right. For example, if a defendant is convicted in federal court, they may appeal their conviction to an intermediate appellate court.<\/p>\n<p>After an individual appeals their conviction to the intermediate appellate court, they are generally not entitled to further appeal to the next (and highest) court. The highest-level courts in the United States typically have discretion to select which cases it will review.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How active are the authorities in tackling financial crime?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The U.S. has long been a leader in the global effort to fight financial crime, as recognized in the periodic evaluations conducted by Financial Action Task Force (FATF), an inter-governmental policymaking body in the area of anti-money laundering (AML). While the enforcement priorities may shift with changes in administration, the U.S. has a strong enforcement architecture for investigating and prosecuting financial crime.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">In the last 5 years, have you seen any trends or focus on particular types of offences, sectors and\/or industries?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In recent years, the U.S. Department of Justice has placed emphasis on certain types of offenses, including:<\/p>\n<p>Sanctions Evasion: The DOJ has increasingly treated sanctions evasion as a central component of its national-security and corporate-crime agenda. In practical terms, this shift has manifested in both civil and criminal actions targeting companies and individuals who facilitate the circumvention of export controls, transshipments, illicit financial flows and disguised ownership structures.<\/p>\n<p>Transnational Criminal Enterprises: The DOJ has announced that dismantling and prosecuting the leadership of cartels and transnational criminal organizations (\u201cTCO\u201d) is now one of its highest law-enforcement priorities. The DOJ has shifted white-collar tools\u2014such as money-laundering statutes, asset-forfeiture mechanisms, and the FCPA\u2014toward investigations and prosecutions involving TCOs.<\/p>\n<p>Cybercrime: The DOJ has made enforcement of cybercrime a core priority, underscoring broad strategic goals to deter, disrupt and prosecute digital-threat actors across infrastructure, financial systems and emerging technologies. Among the key emphases are tackling ransomware\/extortion networks, dismantling criminal \u201cinitial access\u201d infrastructure (e.g., botnets, credential-markets, bulletproof hosting), and employing asset forfeiture and international cooperation to hold bad actors accountable.<\/p>\n<p>Health Care Fraud: The DOJ has devoted increasing resources to combatting health care fraud in recent years. In particular, authorities have focused on fraud involving the federal Medicare and Medicaid programs and schemes involving opioids.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Have there been any landmark or notable cases, investigations or developments in the past year?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In February 2025, OKX, one of the largest cryptocurrency exchanges in the world, pled guilty to operating an unlicensed money-transmitting business, which facilitated over one trillion dollars\u2019 worth of transactions by U.S. retail and institutional customers. As part of the plea, OKX agreed to pay penalties totalling more than $500 million.<\/p>\n<p>In June 2025, the DOJ announced criminal charges against 324 defendants as part of a nation-wide effort to combat healthcare fraud. The defendants allegedly submitted over $10 billion in fraudulent claims. As part of enforcement efforts, the DOJ seized over $245 million in criminal proceeds.<\/p>\n<p>In October 2025, the DOJ released two sweeping indictments of current and former NBA players, among others, involved in schemes relating to illegal gambling. In one scheme, players and coaches allegedly fixed or disclosed nonpublic information to allow affiliates to profit on specific bets.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any pending or proposed changes to the legal, regulatory and\/or enforcement framework?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In late 2024, FinCEN published the IA AML Rule, which defined certain investment advisers as \u201cfinancial institutions\u201d under the Bank Secrecy Act (BSA). The IA AML Rule requires covered IAs to establish anti-money laundering, report suspicious activity, and keep relevant records, among other requirements. The IA AML Rule was designed to address the risks that investment advisers may be misused by money launderers, terrorist financers, or other actors who seek access to the U.S. financial system for illicit purposes and who threaten U.S. national security. The Rule was set to go into effect on January 1, 2026, but FinCEN has proposed delaying the effective date to January 1, 2028.<\/p>\n<p>The U.S. Treasury Department has announced that it intends to issue new rules relaxing the requirements under the Corporate Transparency Act that currently requires many entities to report beneficial ownership information to FinCEN. The contemplated new rule will only require foreign entities to report beneficial ownership information and exempt U.S. entities.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any gaps or areas for improvement in the financial crime legal framework?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The U.S. criminal justice system is constantly trying to balance individual rights, safeguarding the integrity of the system, and determining what acts should be punished criminally, as opposed to civilly or regulated.<\/p>\n<p>Additionally, the regulation of cryptocurrency has been a hot topic as of late. U.S. regulators currently have limited jurisdiction over certain crypto-asset trading platforms and stablecoins, which means illicit actors may exploit those gaps.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">4833<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/120022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=120022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}