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Department of Justice, Criminal Division announces self-disclosure pilot program for individuals
On April 15, 2024, the Department of Justice ("DOJ"), Criminal Division introduced a pilot program on voluntary self-disclosure ("VSD") for individuals, setting stringent criteria for individuals to qualify for a Non-Prosecution Agreement ("NPA"). To be eligible, individuals must voluntarily report a covered offense, such as violations under the Foreign Corrupt Practices Act ("FCPA") or the Foreign Extortion Prevention Act ("FEPA"), provide complete and original information previously unknown to the DOJ, repay all proceeds of the offense, and offer full cooperation with the DOJ's investigation. Additionally, the individual must not be the leader of the misconduct, an executive-level manager, or a domestic government official.
New European Union Regulations to combat money laundering adopted
On April 24, 2024, the European Parliament adopted a comprehensive anti-money laundering legislative package aimed at bolstering the European Union's ("EU") efforts to combat money laundering and terrorist financing. This package includes the establishment of a new central supervisory authority, the Anti-Money Laundering and Terrorist Financing Authority ("AMLA"). Key aspects include extended access to beneficial ownership data, stricter due diligence obligations for entities such as banks, asset managers, and crypto asset service providers, and a new EUR 10,000 (Euro ten thousand) limit on cash payments. Professional football clubs will also be subject to these regulations from 2029. AMLA, based in Frankfurt, will oversee high-risk financial companies and coordinate national supervisory authorities. The formal adoption by EU Council is pending, after which the regulations will be published in the EU official journal.
Australia's attorney general's department publishes draft guidance on newly enacted 'Failure to Prevent' Bribery Law
On April 29, 2024, Australia's attorney general's department released preliminary guidance on compliance procedures for the newly enacted 'failure to prevent' foreign bribery law, introduced through the Crimes Legislation Amendment (Combatting Foreign Bribery) Bill 2023. Adopted by parliament in February 2024, this law mandates that the government provide guidance on what constitutes 'adequate procedures' to prevent foreign bribery, which companies can use as a defense against charges. The draft guidance covers 6 (six) key areas including proportional and effective bribery-prevention controls, senior management responsibilities, risk assessments, due diligence, communication, training and reporting. It emphasises that the 'adequacy' of a company's procedures will be judged on a case-by-case basis by the courts, rather than being assessed strictly as a checklist.
First declination under new corporate enforcement policy: DOJ demonstrates willingness to reward self-disclosing and cooperative companies in export control violations
On May 22, 2024, DOJ made a groundbreaking announcement by declining to prosecute MilliporeSigma, a biochemical company, for an employee's export control violation, due to the company's VSD and cooperation under the new National Security Division Enforcement Policy ("NSD Policy"). The case involved 2 (two) individuals, who fraudulently obtained and exported discounted products to China. MilliporeSigma's swift actions led to the guilty pleas of the perpetrators and the disruption of the illegal activities. Deputy Attorney General Lisa Monaco emphasized this case as a clear message that businesses uncovering and reporting internal wrongdoing can avoid prosecution, reinforcing the DOJ's prioritisation of sanctions and export control enforcement. The revised NSD Policy mainly modifies and broadens the DOJ's VSD programs, incorporating extra safeguards specifically for mergers and acquisitions. This marks the first declination under the NSD Policy, which encourages companies to self-disclose, cooperate fully, and remediate promptly, unless aggravating factors exist.
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