In remarks to an industry group on 12 May, 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. However, Jerry Kral, who co-leads the Compliance Advisory and Technology Practice at Epiq warns that "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.