[author: Jerry Kral]
In remarks to an industry group, Matthew R. Galeotti, head of the Department of Justice (DOJ) Criminal Division, emphasized that companies may avoid criminal resolutions if they voluntarily self-disclose misconduct, fully cooperate with the government, remediate promptly, and do not present aggravating factors.
This statement underscores a shift in DOJ enforcement posture — potentially avoiding criminal exposure for companies, their executives, and employees. Self-disclosure is not a free pass and companies that come forward should be prepared to demonstrate the effectiveness of their compliance programs. Disclosure opens a dialogue with the DOJ, not a monologue — questions will be asked, and follow-up is likely.
For nearly a decade, DOJ prosecutors have examined the design and performance of corporate compliance programs. While leadership changes with new administrations, prosecutors remain well-equipped to assess whether a company has the right culture, controls, and commitment to compliance. Meanwhile, multinational corporations must navigate increased enforcement efforts by foreign regulators in coordination with U.S. authorities.
Importantly, enforcement priorities shift. In less than four years, a new administration could reintroduce aggressive stances or roll back current policies.
The window of opportunity for reform and investment is now.
A Call to Action for Leadership
Independent Directors, executive leaders, General Counsels, and Chief Compliance Officers should ask themselves:
“Do we have the culture, awareness, and internal controls to prevent, detect, and respond to misconduct?”
If the answer is uncertain, now is the time to invest. A strong compliance function is more than a legal safeguard — it’s a business enabler and strategic differentiator.
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