The U.S. Department of Justice (DOJ) recently launched a so-called “Safe Harbor Policy” in an effort to stimulate prompt and voluntary self-disclosure of criminal behavior. This policy was announced earlier this month by Deputy Attorney General Lisa Monaco. The new policy offers a supposition against prosecutorial declination for voluntary self-disclosures of criminal conduct that was unearthed during the process of a merger or acquisition.
As a result of this new policy, corporations at the forefront of large legal developments such as mergers and acquisitions are faced with a new incentive to investigate and voluntarily disclose any criminal behavior they uncover. The thought process behind such measures is clear; the DOJ hopes to foster an environment of self-regulation among corporations, emboldening them to police their own actions and those of their potential partner corporations.
This new policy represents an increasing focus from the DOJ on corporate criminal behavior, offering a degree of protection for corporations that actively participate in unearthing and addressing such behavior within their ranks. However, there are potential ramifications of this policy that legal teams should be aware of. Most notably, the full extent of the protections offered by this new policy are as of yet undefined, leaving a potential gray area for corporations to navigate.
Despite these uncertainties, the overall ethics and morals for businesses are clear – it is vital to uncover and rectify any misconduct, not just for the potential DOJ protections, but for the health and overall success of the business itself. As the implications of this new policy continue to unfold, one key lesson can be extracted: the importance of being proactive and diligent in self-monitoring and disclosure.