Will Dodd-Frank Whistleblowers Bypass Compliance Officers?

According to the Washington Post, the Dodd-Frank Wall Street Reform and Consumer Protection Act includes whistleblower provisions that are causing some corporations to rethink their internal compliance policies. The so-called bounty program provides for whistleblowers to receive up to 30% of enforcement actions exceeding $1 million, which some say will incentivize employees to go directly to the SEC rather than to internal compliance officers. While the SEC hasn’t developed the necessary rules to implement the provision, companies are already reviewing employee complaint processes and procedures.



Compliance Programs May Reduce Corporate Culpability

According to the Wall Street Journal, the U.S. Sentencing Commission has proposed revamping the penalties for corporations convicted of criminal activity. The revisions, which are subject to public comment and which will be voted on in April, include provisions that would give a break to corporations that have compliance programs with a focus on white collar crime. In order to a corporation to qualify for reduced sentencing, the compliance officer must be responsible for detecting criminal activity, have access to directors, and report the criminal activity to the proper authorities.