The Justice Department is charging ahead with a new policy that makes top executives certify the effectiveness of their compliance program as part of corporate resolutions
The U.S. Justice Department isn’t backing away from a policy, criticized by some in the corporate sector, of having compliance officers sign off on the effectiveness of their programs as part of settlements.
The certifications serve as a tool for the Justice Department as it tries to hold individuals accountable for their role in corporate wrongdoing, said Alixandra Smith, the deputy chief of the criminal division at the Brooklyn U.S. attorney’s office. “That’s something you’re going to see more of,” Ms. Smith said at a compliance conference in New York on Thursday, referring to the certifications.Our Morning Risk Report features insights and news on governance, risk and compliance.The Justice Department earlier this year signaled it would expect company chief executives and compliance chiefs to sign off on the effectiveness of their compliance programs, potentially making them personally liable if something goes wrong later on.