In an article published in Law360, Pillsbury partners Mark Krotoski and Matthew Rabinowitz discuss several key reasons why the DOJ’s National Security Division’s first enforcement policy declination under its new Corporate Enforcement Policy (CEP) by is significant for corporations.

The authors state that the DOJ’s decision to decline to prosecute global company Robert Bosch GmbH for alleged violations of the Export Control Reform Act, confirms its uniform, department-wide corporate enforcement policy is “not merely aspirational” but is operational and outcome-determinative. It delivers on the DOJ’s promise of uniformity and predictable incentives across different components.

They also emphasize that this case proves a full criminal declination is achievable even for significant national security violations, provided the company meets the required standards.

To secure a declination, the authors note, a company must be prompt and proactive, engaging the DOJ through voluntary self-disclosure before the misconduct is independently detected by the government.

However, is not enough to have an “on-paper” compliance policy, the authors caution. They stress that companies must devote effective resources, training, and personnel to successfully detect, escalate, and remediate issues and secure a declination.

Read the full article here.