DOJ FCPA Pilot Program Pushes Self-Disclosures

On April 5, 2016, the US Department of Justice (DOJ) Fraud Section issued a nine-page memorandum describing a one-year pilot program designed to entice companies to voluntarily self-report FCPA violations and cooperate with the DOJ. The memorandum articulates, for the first time, precisely what the Fraud Section considers to be complete and voluntary self-disclosure, full cooperation and appropriate remediation of internal controls and compliance programs. Pursuant to the new pilot program, a company that satisfies these elements might receive such tangible benefits as up to a 50 percent reduction off the bottom of the fine range indicated by the US Sentencing Guidelines and/or avoidance of a compliance monitor (disgorgement of all ill-gotten gains will still be required). A declination of prosecution may also be in the cards; however, the seriousness of the offense will be considered. Examples of when a declination will likely not be warranted include: where senior