The Department of Justice launched a one-year pilot program to promote transparency and accountability in enforcing the Foreign Corrupt Practices Act (FCPA). The program provides incentives for companies to self-report FCPA violations by offering up to a 50% reduction in penalties for full cooperation. It also considers not requiring a monitor or declining prosecution if a company demonstrates an effective compliance program. The goal is to motivate voluntary disclosures over waiting to get caught. However, the DOJ maintains flexibility in determining how much credit to provide. The program applies only to the DOJ's Fraud Section and expires after one year pending review.

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FCPA Self-Reporting Pilot Program: Motivation to Self-Report?
PRACTICE AREA / INDUSTRY: CORPORATE COMPLIANCE; WHITE COLLAR LITIGATION &
GOVERNEMENT INVESTIGATIONS
Brian E. Dickerson Anthony J. Calamunci
brian.dickerson@fisherbroyles.com anthony.calamunci@fisherbroyles.com
202.570.0248 419.376.1776
Nicole Hughes Waid
nicole.waid@fisherbroyles.com
202.906.9572
April 13, 2016
On April 5, the Department of Justice launched a one-year pilot program in the Fraud Section’s FCPA Unit in
hopes to promote both greater transparency and accountability that will motivate companies to self-report
FCPA-related misconduct. The DOJ’s Fraud Section released a policy document called The Fraud Section’s
Foreign Corrupt Practices Act Enforcement Plan and Guidance (click here to view) that outlines the steps the
DOJ is calling “enhanced enforcement strategy.”
The new program “draws a clear distinction between credit that you can be eligible for voluntary self-disclosure
as opposed to companies that may decide to wait to see if they get caught, and then cooperate,” said Andrew
Weissmann, chief of the DOJ fraud section and author of the policy.
The Guidance lays out the enhanced enforcement in three steps. The first and according to the Guidance,
the most important step in combatting FCPA violations, is the addition of investigative and prosecutorial
resources. The FCPA unit is increasing by more than 50% with the addition of 10 more prosecutors and the
FBI has established three new squads of agents devoted to FCPA investigations and prosecutions.
Additionally, the Guidance incorporates the new standards for individual liability and prosecution as set out in
the Yates Memo published last September by the DOJ.

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The second step outlines the international approach being taken to combat corruption. The DOJ has
increased its coordination with foreign counterparts around the globe to step up enforcement to hold corrupt
individuals and companies accountable. Cooperation globally has been increasing since 2007 so this step is
nothing more than a restatement of already existing collaborative programs.
The third step is the launch of the FCPA enforcement pilot program. The DOJ anticipates this will have the
greatest impact on motivating companies to voluntarily self-report FCPA violations. The Guidance outlines
how the pilot program will work and how the Fraud Section might award credit over what is currently provided
for by the U.S. Sentencing Guidelines and the Principles of Federal Prosecution of Business Organizations
found in the United States Attorneys’ Manual. To qualify for enhanced credit, a company must do the
following:
Voluntarily self-report potential FCPA violations. A company who does not self-report, may still
receive some credit under the program for cooperation however, at most it will be a 25% reduction
off the sentencing guidelines;
Fully cooperate with the investigation and do so in a timely fashion. This includes providing
information on individual accountability in accordance with the Yates Memo. Not cooperating in
what the DOJ determines as “timely fashion” may result in markedly less consideration than for full
cooperation;
Appropriate and timely remediation of the violation. This includes improvements to the corporate
compliance and ethics program, discipline of culpable employees, and any additional steps that
demonstrate the measures the company has taken to prevent future misconduct.
If the company has fully cooperated and met the standards outlined in the Guidance, the DOJ:
May accord up to a 50% reduction off the bottom end of the Sentencing Guidelines;
Generally will not require the appointment of an independent monitor if the company has
demonstrated the implementation of an effective compliance program;
Will consider declining prosecution.
It is important to note that the DOJ has given themselves great leeway to apply this new guidance in
determining how they will award the full credit benefits. They “may accord up to a 50% reduction” and
“Generally will not require…” and “Will consider…” All written to give the DOJ the ability to avoid giving
companies the full benefits outlined in the pilot program if they deem it appropriate.
The pilot program is effective as of April 5, 2016. At the end of the one-year period, the Fraud Section will
determine whether to extend or modify the program. The program applies only to FCPA matters brought by

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the Criminal Division’s Fraud Section. It does not apply to any other section or any other part of the
Department of Justice, or any other agency.
For further information on the subject matter of this alert, please contact the following FisherBroyles attorneys:
Washington, D.C.
Brian E. Dickerson
brian.dickerson@fisherbroyles.com
202.570.0248
Washington, D.C.
Nicole Hughes Waid
nicole.waid@fisherbroyles.com
202.906.9572
Cleveland / Toledo
Anthony J. Calamunci
anthony.calamunci@fisherbroyles.com
419.376.1776