US Unveils New Policy to Encourage Corporate Misconduct Reporting

Prosecutors will offer reduced penalties and other benefits to companies that self-disclose and cooperate with investigations.

Mar. 10, 2026 at 9:57pm

Got story updates? Submit your updates here. ›

The U.S. Justice Department is rolling out a new nationwide policy across all divisions to encourage companies to report criminal misconduct in exchange for reduced penalties and other benefits. The policy, similar to one already offered by the DOJ's criminal division, will offer tiers of reduced penalties for companies that self-disclose, cooperate with investigators, and remediate the misconduct.

Why it matters

This new policy marks an effort by the DOJ to address criticism that cooperation benefits have been inconsistent in the past. The goal is to incentivize well-intentioned businesses to self-report wrongdoing and work with authorities, while still maintaining the ability to seek appropriate resolutions against companies that perpetrate white collar offenses.

The details

Under the new policy, the DOJ will encourage prosecutors to decline prosecution of companies that report misconduct previously unknown to the DOJ and fully cooperate. Those companies will have to pay restitution and return ill-gotten gains, but will avoid fines and third-party monitoring. For firms that report issues already known to the DOJ, prosecutors would offer a deal promising not to prosecute so long as certain conditions are met, with penalties reduced by 50% to 75% and no monitorship. Companies can also receive discounted penalties of up to 50% in exchange for cooperation and remediation, even if they do not self-report.

  • The new policy was detailed in a DOJ memo shared with Reuters on March 10, 2026.

The players

U.S. Justice Department

The federal agency responsible for enforcing the law and administering justice in the United States.

Todd Blanche

Deputy Attorney General who stated that the DOJ will reward well-intentioned businesses that self-disclose wrongdoing, cooperate with investigations, and remediate misconduct.

Got photos? Submit your photos here. ›

What they’re saying

“Well-intentioned businesses know that, across the Department, they will be rewarded when they self-disclose wrongdoing, cooperate with our investigations, and remediate the misconduct.”

— Todd Blanche, Deputy Attorney General (Reuters)

“But for those that do not, make no mistake – we will not hesitate to seek appropriate resolutions against companies and individuals alike that perpetrate white collar offenses that harm American interests.”

— Todd Blanche, Deputy Attorney General (Reuters)

What’s next

The new policy will supersede similar policies that U.S. attorneys' offices have had in place, marking a coordinated nationwide effort by the DOJ to incentivize corporate self-reporting and cooperation.

The takeaway

This new DOJ policy represents a significant shift in the government's approach to corporate misconduct, moving away from inconsistent cooperation benefits to a more standardized nationwide program that rewards companies for proactively addressing and remediating criminal wrongdoing.