The Department of Justice (DOJ) has introduced a pilot whistleblower rewards program as part of its ongoing efforts to combat corporate misconduct and hold individuals accountable. Deputy Attorney General Lisa Monaco and Acting Assistant Attorney General Nicole Argentieri announced the new program at the American Bar Association’s Annual National Institute on White Collar Crime.
The whistleblower program aims to incentivize individuals to come forward and disclose corporate or financial misconduct by offering them financial rewards from any resulting forfeiture of criminal proceeds. Similar to existing whistleblower programs offered by agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), the DOJ’s program will allow whistleblowers to receive a portion of the government’s recovery.
The initiative is intended to fill gaps in other agencies’ programs, particularly in cases involving foreign corruption that are outside the jurisdiction of the SEC. The DOJ plans to develop and implement the pilot program within the next 90 days, with a formal start date later this year.
Key guidelines to qualify for whistleblower rewards include providing original, nonpublic, and truthful information that the government is not already aware of. Whistleblowers must be the “first in the door” to provide this information. They also must not have participated in the disclosed wrongdoing, and recovery is only permitted after victims have been compensated for their losses. The program will focus on the most significant cases, setting a monetary threshold similar to the SEC and CFTC programs.
In addition to the whistleblower program, the DOJ is also committed to addressing the risks associated with artificial intelligence (AI). Monaco emphasized that AI can “supercharge” illegal activities, such as fraud and market manipulation. As part of its overall compliance assessment, the DOJ will evaluate a company’s ability to manage AI-related risks. This evaluation will be part of the DOJ’s Evaluation of Corporate Compliance Programs.
The introduction of the whistleblower rewards program should prompt companies to prioritize the incorporation of AI risk management into their compliance programs. Companies already involved in automated trading are likely aware of the risks posed by AI. However, even companies not engaged in AI-based trading should consider implementing tools to detect and combat potential misuse of AI to align with the DOJ’s expectations.
FAQ:
Q: What is the purpose of the DOJ pilot whistleblower rewards program?
A: The program aims to incentivize individuals to disclose corporate or financial misconduct by offering them financial rewards from any resulting forfeiture of criminal proceeds.
Q: How does the whistleblower program differ from existing programs?
A: The whistleblower program fills gaps in other agencies’ programs, particularly in cases involving foreign corruption outside the SEC’s jurisdiction.
Q: What are the guidelines for qualifying for whistleblower rewards?
A: Whistleblowers must provide original, nonpublic, and truthful information that the government is not already aware of. They cannot have participated in the disclosed wrongdoing, and recovery is only permitted after victims have been compensated. The program focuses on the most significant cases.
Q: What risks does the DOJ address regarding artificial intelligence?
A: The DOJ aims to combat the risks of AI being used for illegal activities like fraud and market manipulation.
Q: How will the DOJ evaluate a company’s AI-related risks?
A: As part of its overall compliance assessment, the DOJ will assess a company’s ability to manage AI-related risks in its Evaluation of Corporate Compliance Programs.
Source: [link to be inserted if known]
The Department of Justice (DOJ) has introduced a pilot whistleblower rewards program aimed at combating corporate misconduct and holding individuals accountable. This program incentivizes individuals to come forward and disclose corporate or financial misconduct by offering them financial rewards from any resulting forfeiture of criminal proceeds. Similar to existing whistleblower programs offered by agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), the DOJ’s program allows whistleblowers to receive a portion of the government’s recovery.
The introduction of this whistleblower program is significant as it fills gaps in other agencies’ programs, particularly in cases involving foreign corruption that fall outside the jurisdiction of the SEC. The DOJ aims to develop and implement the pilot program within the next 90 days, with a formal start date later this year.
To qualify for whistleblower rewards, individuals must provide original, nonpublic, and truthful information that the government is not already aware of. They should be the first to provide this information and must not have participated in the disclosed wrongdoing. Recovery is only permitted after victims have been compensated for their losses. The program will focus on the most significant cases and is expected to establish a monetary threshold similar to the SEC and CFTC programs.
In addition to the whistleblower program, the DOJ is also addressing the risks associated with artificial intelligence (AI). Deputy Attorney General Lisa Monaco emphasized that AI can “supercharge” illegal activities like fraud and market manipulation. The DOJ plans to evaluate a company’s ability to manage AI-related risks as part of its overall compliance assessment. This evaluation will be included in the DOJ’s Evaluation of Corporate Compliance Programs.
The introduction of the whistleblower rewards program should prompt companies to prioritize the incorporation of AI risk management into their compliance programs. Even companies not engaged in AI-based trading should consider implementing tools to detect and combat potential misuse of AI, aligning with the DOJ’s expectations.
For more information on the DOJ pilot whistleblower rewards program and AI-related risks in corporate compliance, visit the Department of Justice’s official website.
The source of the article is from the blog zaman.co.at