Principal Deputy Assistant Attorney General Nicole M. Argentieri addressed the Society of Corporate Compliance and Ethics (SCCE) at their 23rd Annual Compliance & Ethics Institute, highlighting the Department of Justice's efforts to hold companies accountable for corporate crime.
Argentieri emphasized the role of compliance professionals in preventing misconduct and outlined the Criminal Division's strategies to support robust corporate compliance programs. "Companies are the first line of defense against corporate crime," she stated, adding that it is crucial for compliance programs to be well-resourced and empowered.
The updated Evaluation of Corporate Compliance Programs (ECCP) was a focal point of her remarks. This resource helps prosecutors assess a company's compliance program during criminal investigations. The revised ECCP includes new considerations for managing risks associated with artificial intelligence, encouraging whistleblower reports, and ensuring compliance personnel have access to relevant data.
Argentieri announced updates to the ECCP addressing emerging risks such as AI misuse. "Our updated ECCP includes an evaluation of how companies are assessing and managing risk related to the use of new technology such as artificial intelligence," she explained.
She also discussed two pilot programs: Compensation Incentives and Clawbacks Pilot Program and Corporate Whistleblower Awards Pilot Program. These initiatives aim to align compensation with ethical behavior and encourage internal reporting of misconduct.
The clawback program has led nine companies across various industries to integrate compliance criteria into their compensation systems. "Early indications are that these innovations are changing corporate behavior," Argentieri noted.
The whistleblower program has already received over 100 tips since its launch, demonstrating its effectiveness in encouraging internal reporting structures within companies. Companies that report misconduct within 120 days after receiving an internal whistleblower report may receive significant benefits under the Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP).
Argentieri highlighted several recent corporate resolutions as examples of cooperation and remediation efforts by companies like Boston Consulting Group (BCG) and SAP, which received significant reductions in penalties due to their proactive measures.
In closing, Argentieri urged companies to invest in effective compliance programs and act swiftly when uncovering misconduct: "Now is the time to make the necessary compliance investments... And when you uncover misconduct: call us before we call you."