On April 30, 2019, the U.S. Department of Justice’s Criminal Division announced revised guidance for assessing corporate compliance systems. The guidance goes to what authorities abroad sometimes call corporate “self-cleaning” — efforts by private firms to identify and remediate improper behavior. (See, for example, Article 57 of European Public Procurement Directive 2014/24/EU.) The new guidance expands on the 2017 guidance (below), and elaborates on the Justice Department’s summary discussion of corporate compliance programs in the Justice Manual § 9-28.800.
As the new guidance suggests, it is generally in accord with prior guidance on corporate compliance systems, such as the guidelines issued by the U.S. Sentencing Commission, the guidance published by the U.S. Justice Department and the U.S. Securities & Exchange Commission (SEC) under the Foreign Corrupt Practices Act (FCPA), and the UK Ministry of Justice guidance implementing the UK Bribery Act, among many similar guidance documents published by governments and international organizations under recent anti-corruption laws. As the FCPA guidance acknowledges, at page 56 and note 309, requirements for corporate compliance systems are highly uniform around the world.
The new guidance is noteworthy, though, for stressing (at pages 9-12) that a firm with an effective compliance system should maintain a strong compliance function, either in-house or through an outsourced vendor. As companies around the world move to implement compliance systems, they should recognize that enforcement authorities will often expect to see a robust compliance function in place, with the autonomy and authority necessary to address emerging risks of corruption and misconduct.
