DOJ Announces FCPA Enforcement Pilot Program And Guidance

On April 5, 2016, the Fraud Section of the US Department of Justice (DOJ) launched a one-year pilot Foreign Corrupt Practices Act (FCPA) cooperation initiative and released an accompanying memorandum outlining its enforcement plan and guidance. The stated purpose of the new initiative is to increase transparency into the DOJ's settlement considerations and the particular benefits a company may receive should it choose to self-report an FCPA violation. The memorandum raises several points that may be relevant to companies investigating or considering whether to report potential FCPA violations:

1. If a company "cooperates fully" in a case where a criminal resolution is warranted, the company may receive a reduction of up to 50 percent below the low end of the applicable US Sentencing Guidelines fine range, and the DOJ will generally not require the appointment of a monitor. The memorandum notes, as discussed below, that the DOJ may also decline to press charges