The Department of Justice (DOJ) recently announced two new measures to enhance its corporate criminal enforcement efforts: a whistleblower rewards program and updated guidance under which federal prosecutors will assess risks related to artificial intelligence (AI) when evaluating corporate compliance programs. Given these new measures, now is a good time for companies to examine their compliance programs with an eye toward strengthening internal reporting mechanisms and understanding and managing AI-related risks.
The whistleblower program will offer a portion of any civil or criminal forfeitures to individuals who provide information that helps DOJ discover “significant corporate or financial misconduct” that is not otherwise known to DOJ. The program will cover a broad range of corporate misconduct, but DOJ is especially interested in information about criminal abuses of the US financial system, foreign corruption cases outside the jurisdiction of the Securities and Exchange Commission (SEC), and domestic corruption cases involving illegal corporate payments to government officials. The program will not reward whistleblowers who were involved in the criminal activity, who report after DOJ already knows about the misconduct, or who report in areas where there is already a financial incentive to disclose. The program is expected to be formally implemented later this year, after DOJ develops the specifics over the next 90 days.
Under DOJ’s updated Evaluation of Corporate Compliance Programs’ guidance, federal prosecutors will assess companies’ abilities to manage AI-related risks as part of their compliance efforts. This updated guidance is part of DOJ’s continued focus on and investment in combating the risks posed by AI, which Deputy Attorney General Lisa Monaco called a “double-edged sword” with “the sharpest blade yet”. DOJ has also appointed its inaugural chief science and technology advisor and chief artificial intelligence officer to oversee its response to AI-related crimes. Other regulators, such as the SEC and the Commodity Futures Trading Commission, have similarly focused on AI-related risks and proposed new requirements or sought public comment on how AI may be used in the financial markets.
Corporate criminal enforcement continues to be a priority for DOJ. To avoid being caught off guard by a DOJ investigation based on a whistleblower complaint, corporate leaders should examine the strength of their compliance and reporting channels and consider implementing additional proactive measures to uncover misconduct and promote effective internal reporting. Companies that use or rely on AI should also consider whether their current compliance policies are sufficient to cover the potential legal risks associated with AI, or whether an update is warranted.
This article is available in the Jenner & Block Japan Newsletter. / この記事はJenner & Blockニュースレターに掲載されています。
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