The Department of Justice (DOJ) announced on March 10, 2026, the release of its first-ever Department-wide Corporate Enforcement Policy (CEP). This new policy will apply to all corporate criminal matters handled by the DOJ, with the exception of those relating to antitrust law.
According to the DOJ, the CEP is designed to offer additional incentives for companies to voluntarily disclose misconduct, cooperate with investigations, and take steps to correct wrongdoing. The department stated that applying the policy across all criminal cases will provide greater “predictability” for companies facing potential charges.
The CEP establishes a three-tiered framework based on a company’s actions. Companies that voluntarily and promptly disclose misconduct, fully cooperate, and promptly remediate the issue may be eligible for a declination of prosecution, provided there are no significant aggravating factors such as egregious conduct or substantial harm.
Even if a company doesn’t fully meet the criteria for a declination, substantial cooperation and remediation could qualify it for a Non-Prosecution Agreement (NPA). In these “near-miss” cases, the CEP contemplates an NPA lasting less than three years, without an independent compliance monitor, and a fine reduction of 50% to 75% off the low end of applicable sentencing guidelines.
For all other cases, prosecutors will retain discretion to determine the appropriate resolution, including penalties. Fine reductions in these cases are capped at 50% off the U.S. Sentencing Guidelines range.
The new policy supersedes existing component-specific programs, including a recent Financial Crimes program from the Southern District of New York, eliminating previously available expedited pathways for declination. The definition of “recidivism” has also been broadened to include prior resolutions involving similar misconduct, regardless of when they occurred.
Prosecutors will also assess a company’s cooperation in light of its size, sophistication, and resources. The policy encourages earlier assessments of CEP eligibility and clarifies that companies can continue to meet independent legal obligations even during DOJ investigations, provided they notify the department of any actions that may conflict with the investigation.
Frequently Asked Questions
What does the CEP apply to?
The CEP applies to all corporate criminal matters handled by the Department of Justice, except for those relating to antitrust under 15 U.S.C. §§ 1-38.
What happens if a company self-reports misconduct after receiving an internal whistleblower report?
A company is eligible for a declination even if a whistleblower first submits information to the DOJ, provided the company self-reports within 120 days of receiving the internal report and meets all other requirements for a declination.
What is a Non-Prosecution Agreement (NPA)?
An NPA is an agreement that may be offered to companies that provide substantial cooperation and remediation but do not fully qualify for a declination. It typically involves a term of less than three years, no independent compliance monitor, and a fine reduction of 50% to 75%.
As companies navigate this new landscape, will the standardized approach to corporate enforcement ultimately encourage greater transparency and accountability, or will it create new challenges in assessing risk and responding to potential wrongdoing?
Related reading