The United States Department of Justice (DOJ) has recently made public a new safe harbor policy aimed at voluntary self-disclosures. This policy is particularly associated with matters of mergers and acquisitions. The announcement was made by Deputy Attorney General Lisa Monaco who emphasized the background context of rapid expansion in national security-related corporate crime that motivated this directive.
Announced on October 4, the Safe Harbor Policy is a measure that aims to provide a level of immunity for corporations willing to voluntarily disclose potential misconduct during the processes of merger and acquisition.
The DOJ is likely hoping that by putting this safety-catch in place, they can encourage companies to more readily expose potential issues, whether internal or external, without the inherent fear of self-incrimination or legal backlash.
This move stands in recognition of the considerable influence business mergers and acquisitions have not only on the entities directly involved but also on the national economy and security backdrop. With corporate crime in the security field on the rise, the need for more stringent checks and balances has never been more pronounced and the Safe Harbor Policy seems to be part of this response.
Legal professionals across both domestic and international platforms would do well to familiarize themselves with the policy’s details, as it seems set to become an important factor in M&A transactions in the United States.