DOJ Issues New Guidance On Evaluating The Effectiveness Of Compliance Programs

On April 30, 2019, the Department of Justice (DOJ) Criminal Division published new guidance for corporate compliance programs. The new guidance (Updated Compliance Guidance) updates a prior guidance document providing factors that prosecutors should consider when evaluating the effectiveness of compliance programs for determining how to prosecute or resolve corporate criminal enforcement actions. Compliance program effectiveness is a key variable DOJ takes into consideration when (1) making charging decisions and exercising prosecutorial discretion; (2) making sentencing recommendations, including calculating recommended fines; and (3) deciding whether to impose reporting requirements or appoint an outside compliance monitor as part of a corporate resolution. The Updated Compliance Guidance provides useful additional insights into prosecutors' assessment criteria when making such decisions.