DOJ Unveils Whistleblower Reward Program to Combat FCPA Violations and Corporate Misconduct

The Department of Justice (DOJ) is gearing up to launch a new whistleblower reward program aimed at bolstering its efforts to uncover violations of the Foreign Corrupt Practices Act (FCPA). Deputy Attorney General Lisa Monaco announced the program last Thursday, envisioning it as a means to increase the agency's caseload involving potential FCPA breaches. Expected to roll out later this year after a 90-day sprint to a pilot program, the initiative seeks to compensate individuals who provide information on corporate misconduct, under specific circumstances.

Acting Assistant Attorney General Nicole Argentieri provided further insights into the program during remarks at an American Bar Association event on Friday. Argentieri, overseeing the Criminal Division and its Money Laundering and Asset Recovery Section (MLARS), outlined plans for information gathering, stakeholder consultation, and program guideline development to address eligibility requirements for potential whistleblowers.

Monaco and Argentieri emphasized key guardrails already established by the DOJ for the program. Monaco stated, "Only after all victims have been properly compensated; only to those submitting truthful information not already known to the government; only to those not involved in the criminal activity; and only in cases where there isn’t an existing financial disclosure incentive, including other whistleblower programs."

Argentieri highlighted the program's potential in uncovering instances of foreign corruption, particularly those beyond the jurisdiction of existing whistleblower programs. She emphasized the importance of financial incentives in encouraging disclosures and noted the DOJ's expectation to establish a monetary threshold akin to programs at the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission.

In addition to discussing the whistleblower program, Argentieri addressed successes under the DOJ's new policy initiatives, including enhancements to the voluntary self-disclosure policy. She stated, "It’s one thing to issue and update policies. It’s another to actually change corporate behavior," highlighting an increase in company disclosures and praising corporate compliance efforts. For instance, SAP's proactive measures, including incorporating compliance into compensation systems and expanding data analytics capabilities, earned the company a significant reduction in criminal penalties despite prior misconduct.

Argentieri underscored the role of strong compliance programs in preventing corporate crime and emphasized the DOJ's commitment to encouraging companies to invest in robust compliance functions. She stated, "Our corporate enforcement policies are designed to encourage companies to invest in strong compliance functions and to step up and own up when misconduct occurs."

By fLEXI tEAM