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US DOJ to Credit Companies for Self-Reporting

US DOJ to Credit Companies for Self-Reporting

by Starling Insights

Starling Insights Editorial Board

Dec 20, 2022

Observations

According to the US Department of Justice's (DOJ) Marshall Miller, banks and other corporations will receive more lenient terms in the future if they proactively report possible employee misconduct. "When misconduct occurs, we want companies to step up," Miller, a principal associate deputy attorney general, told a banking conference earlier this month. "When companies do, they can expect to fare better in a clear and predictable way."

The banking industry has paid hundreds of billions in fines since the 2008 financial crisis. In those cases, traders and bankers have been accused of manipulating benchmark rates, currencies, and precious metal markets, stealing billions of dollars from developing nations, and laundering money for drug lords and dictators. According to Miller, the DOJ's offer includes a promise that companies that promptly self-report misconduct will not be forced to enter a guilty plea "absent aggravating factors."

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