{"id":11462,"date":"2024-06-06T01:30:51","date_gmt":"2024-06-06T01:30:51","guid":{"rendered":"https:\/\/www.americanconference.com\/fcpa-dc\/?page_id=11462"},"modified":"2024-06-19T14:27:17","modified_gmt":"2024-06-19T14:27:17","slug":"the-dojs-new-pilot-programs-a-bane-for-compliance-programs","status":"publish","type":"page","link":"https:\/\/www.americanconference.com\/fcpa-dc\/aci-insights\/the-dojs-new-pilot-programs-a-bane-for-compliance-programs\/","title":{"rendered":"The DOJ\u2019s New Pilot Programs: A Bane for Compliance Programs"},"content":{"rendered":"
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By Jaclyn Jaeger<\/p>\r\n

Wednesday, June 05, 2024<\/p>\r\n<\/div>\r\n\r\n\r\n

For years, Department of Justice officials have stressed how important chief compliance officers are as the first line of defense in fighting corporate crimes. While that\u2019s true, compliance programs now have a competitor in the DOJ itself.<\/p>\r\n \r\n

This article provides an overview of the DOJ\u2019s new whistleblower rewards pilot program and the Criminal Division\u2019s voluntary self-disclosure (VSD) pilot program for individuals, as well as their criteria to participate. This article further discusses what the real-world application of these pilot programs means for compliance programs.<\/p>\r\n \r\n

Expected to take effect later this year, the whistleblower rewards pilot program was first announced<\/a> by Deputy Attorney General Lisa Monaco in March at the American Bar Association\u2019s 39th National Institute on White Collar Crime event.<\/p>\r\n\r\n

In her remarks, DAG Monaco noted that the whistleblower rewards pilot program will expand the scope of other agencies\u2019 whistleblower programs, including the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC). It will do so by addressing \u201cthe full range of corporate and financial misconduct that the Department prosecutes,\u201d she said.<\/p>\r\n\r\n

Monaco said the DoJ is especially interested in information on criminal abuses of the U.S. financial system; foreign corruption cases beyond the SEC\u2019s jurisdiction, including Foreign Corrupt Practices Act (FCPA) violations by non-issuers; and domestic corruption cases, especially involving corrupt payments to government officials.\r\nIn practical terms, the DOJ\u2019s whistleblower rewards pilot program will further broaden the universe of companies that could be the subject of whistleblower reports, including privately owned companies and companies that are not U.S. issuers.<\/p>\r\n

For compliance officers, the scope of the DoJ\u2019s enforcement interests is also particularly concerning when you consider that the SEC\u2019s Whistleblower Program received more than 18,000 whistleblower tips in fiscal year 2023, \u201ca record number and approximately 50 percent more than the then-record 12,300 whistleblower tips received in fiscal year 2022,\u201d according to SEC data<\/a>.<\/p>\r\n\r\n

Data from the CFTC\u2019s annual report<\/a> highlights that its Whistleblower Office similarly had a record year, receiving 1,530 whistleblower tips, an increase of roughly 50 percent over the number of whistleblower tips received in fiscal years 2020 and 2021.<\/p>\r\n\r\n

Whistleblower eligibility<\/strong><\/p>\r\n \r\n

According to details shared by DAG Monaco, whistleblowers will qualify for a portion of resulting forfeitures if the following criteria have been met:<\/p>\r\n \r\n\t