ST1161

Source text

As written.

Effective implementation also requires those charged with a compliance program’s day-to-day oversight to act with adequate authority and stature. As a threshold matter, prosecutors should evaluate how the compliance program is structured. Additionally, prosecutors should address the sufficiency of the personnel and resources within the compliance function, in particular, whether those responsible for compliance have: (1) sufficient seniority within the organization; (2) sufficient resources, namely, staff to effectively undertake the requisite auditing, documentation, and analysis; and (3) sufficient autonomy from management, such as direct access to the board of directors or the board’s audit committee. The sufficiency of each factor, however, will depend on the size, structure, and risk profile of the particular company. “A large organization generally shall devote more formal operations and greater resources . . . than shall a small organization.” Commentary to U.S.S.G. § 8B2.1 note 2(C). By contrast, “a small organization may [rely on] less formality and fewer resources.” Id. Regardless, if a compliance program is to be truly effective, compliance personnel must be empowered within the company.

Related

Other DOJ standards.