The US Department of Justice (DOJ) is adopting a new approach to encourage corporate transparency: misconduct amnesty. On October 4, 2023, Deputy Attorney General Lisa Monaco announced a policy shift that won’t penalize companies for disclosing misconduct when acquiring other firms, a move that aims to promote self-disclosure in mergers and acquisitions. Companies seeking credit under this policy must reveal any misconduct within six months of the deal’s closure and address the issues within a year. With policies like these, President Biden’s administration is striving to balance corporate compliance and accountability. Critics, like Senator Elizabeth Warren, argue that this policy diverges from the DOJ’s mission, possibly moving towards an undesirable gray area in the private sector.
© 2023 Clear Strategy Co.