Ten Ways Companies Can Stay on Top of DOJ Trends in 2024

A new pilot program urges individuals to report misconduct claims straight to the Department of Justice in exchange for non-prosecution agreements. This and other new incentives make timely self-disclosure even more critical for businesses. Federal officials shared more about their 2024 focus at the National Institute on White Collar Crime in March, outlining how companies can limit risks and potential penalties by being proactive.

1. Implementing new policies and programs: The new clawback pilot program and planned whistleblower reward program signal a shift toward more proactive and preventive measures in corporate governance. To stay on top of these changes, businesses should ensure strong internal controls and reporting mechanisms are in place to address potential issues before they escalate.
2. Adapting to new technology: As DOJ addresses challenges posed by disruptive technologies like artificial intelligence (AI), it will look at how companies use these tools and ensure they don’t contribute to illegal activities. Companies should stay informed about how emerging technologies could impact their operations legally and ethically.
3. Addressing national security threats: DOJ is evolving to address not just traditional threats like terrorism but also sophisticated efforts by nation-states to undermine U.S. security and economic stability. Companies, especially those in technology and finance, face higher risks and added scrutiny to manage these threats. DOJ expects businesses to not only comply with legal standards but also actively prevent misuse of their platforms or technologies that could threaten national security.
4. Protecting against data harvesting: A new executive order allows DOJ to block transactions that give hostile countries access to Americans' sensitive data, establishing a framework to protect this data from foreign threats. Companies dealing with sensitive personal data may need to enhance their data protection measures and be aware of the implications of foreign investments and transactions.
5. Expanding global reach and cooperation: As DOJ expands its international partnerships, multinational corporations will need to manage compliance on a global scale and prepare for scrutiny by U.S. authorities. The international scope of many cases, such as those involving FCPA violations, highlights the importance of compliance even when a company’s operations are based overseas.
6. Focusing on individual accountability: DOJ is intensifying efforts to hold individuals, including high-level executives, accountable for white-collar crimes. It’s also imposing harsher penalties on repeat offenders. This includes revisiting past agreements and enhancing penalties if companies fail to maintain compliance post-settlement. Businesses not only need to ensure their leaders act in accordance with the law, but must also continually evaluate and improve their compliance practices to avoid harsher penalties in the future.
7. Promoting corporate citizenship: There is a strong emphasis on corporations’ duties to prevent misconduct. DOJ is using a mix of incentives and penalties to promote corporate citizenship, including rewarding companies that develop and maintain ethical practices. Companies should invest in robust compliance programs and ethical businesses practices. These are crucial both for preventing misconduct and for mitigating penalties if violations occur.
8. Providing incentives for voluntary disclosure: DOJ encourages companies to voluntarily disclose misconduct and cooperate fully with investigations. There are reputational and tangible benefits, including potentially reduced penalties, for companies that engage proactively with regulators.
9. Highlighting the impact of non-compliance: Recent high-profile enforcement actions show that non-compliance can lead to severe penalties and criminal charges, which can affect a company’s market position and reputation. DOJ urges businesses to make compliance a priority and not an afterthought.
10. Integrating compliance into corporate strategy: Businesses should integrate compliance deeply into their strategic planning and operational protocols. Having a robust, thorough compliance plan can alert businesses to potential problems from the outset, giving them the opportunity to mitigate the issue or proactively work with regulators to resolve it. This can make all the difference to DOJ investigators when they’re determining penalties for non-compliance.

DOJ leaders described a rigorous enforcement landscape where corporate compliance and ethics are paramount and where corporations may play a greater role in protecting national interests. Businesses should consider reviewing their compliance infrastructure and acting swiftly to address any issues.

Contact Candace Gregory or any member of Phelps’ White Collar Defense and Investigations team if you have questions or need advice and guidance.