Client Alert: Head of DOJ Criminal Division’s June 10, 2025, Remarks on White-Collar Enforcement Policy

Jun 13, 2025

KEY TAKEAWAYS

In May and June 2025, the Criminal Division of the U.S. Department of Justice (DOJ) issued two public memos concerning its strategy with respect to white-collar crime, in particular crime under the Foreign Corrupt Practices Act (FCPA).
On June 10, 2025, newly appointed head of the DOJ Criminal Division Matthew Galeotti gave remarks providing further clarity about these newly issued policies.
Galeotti emphasized DOJ’s focus on maintaining efficiency, prosecuting conduct with domestic impact, and encouraging cooperation before, during, and after investigations by providing incentives.

BACKGROUND

Since being appointed head of the DOJ Criminal Division in March 2025, Galeotti has issued policy changes across different areas of federal law enforcement. To that end, on May 12, 2025, he released a public memo on DOJ’s new enforcement protocol with respect to white-collar crime. In the memo, he announced that DOJ would focus on areas of white-collar crime with higher domestic (rather than international) impact. He also increased focus on the rewards for companies who self-report potential criminal conduct, and assured companies that they would face fewer penalties should they self-report. Further, he announced that the Criminal Division would maximize the “efficiency” of its investigations by reducing the use of corporate monitors after uncovering wrongdoing.

On June 10, 2025, the Deputy Attorney General released another public memo concerning the Criminal Division’s guidelines for enforcement of the FCPA. That memo also emphasized DOJ’s focus on prosecutions that serve U.S. interests as opposed to international interests, in particular for alleged misconduct that deprives “specific and identifiable” U.S. entities of fair access to compete or results in economic injury to “specific and identifiable” American companies or individuals.

KEY UPDATES

The same day that the Deputy Attorney General released its public memo concerning the FCPA, Galeotti gave remarks at a conference held by the American Conference Institute. In those remarks, Galeotti gave further detail about DOJ’s FCPA enforcement policy and DOJ’s larger white-collar enforcement policy.

FCPA Enforcement

Galeotti started by announcing that the Criminal Division is now using new evaluation criteria and considering a new non-exhaustive list of factors when deciding whether to pursue an FCPA case. The Criminal Division now looks to whether the alleged misconduct:

Deprived specific and identifiable U.S. entities of fair access to compete;
Involves key infrastructure or assets;
Bears strong indicia of corrupt intent tied to particular individuals and serious misconduct; or
Is associated with the criminal operations of a cartel or transnational criminal organization.

Galeotti also noted that the Criminal Division would focus on individual misconduct rather than corporate misconduct. In particular, Galeotti explained that DOJ would de-emphasize cases brought under the “collective knowledge” theory: a theory used to establish corporate liability by holding the corporation responsible even when criminal knowledge is not possessed by a single employee but instead aggregated from the collective knowledge of multiple employees. Now, DOJ will prosecute cases based on individual knowledge and misconduct rather than the aggregate knowledge of employees.

The motivating interest behind these guidelines is the “vindication of U.S. interests.” Conduct that impacts the United States or the American people is still subject to potential prosecution by DOJ; conduct that does not implicate United States’ interests will be left to foreign counterparts or regulators.

Other White-Collar Misconduct

After discussing DOJ’s FCPA policy, Galeotti described DOJ’s broader white-collar policies. To start, Galeotti clarified his May 12 enforcement memo. He confirmed that the Criminal Division has no plans to close meritorious investigations or dismiss meritorious cases. Relatedly, he instructed defense attorneys to be conscientious about what, when, and how to appeal enforcement decisions. In particular, he proscribed seeking premature relief, mischaracterizing prosecutorial conduct during advocacy, and any forms of dishonesty by defense counsel.

Galeotti then provided more specifics on three areas of interest.

First, Galeotti described DOJ’s position on self-reporting. Companies that voluntarily self-report potential criminal conduct and then cooperate and remediate that behavior will now typically receive a declination, meaning DOJ will decline to prosecute unless other aggravating circumstances exist. DOJ has relatedly narrowed the list of aggravating circumstances that might result in a deviation from this guidance. Galeotti emphasized the fairness and predictability of providing declinations in most cases under these circumstances.

Second, Galeotti announced that DOJ would minimize the use of corporate monitors to induce future compliance. DOJ will only use corporate monitors as a “temporary bridge” to move a company quickly to full compliance with the law. Once a company can achieve compliance on its own, including by self-reporting or providing certifications, DOJ will terminate monitorship. Reducing the use of monitors, Galeotti asserted, would limit wasted effort and financial resources.

Third, Galeotti focused on efficiency in white-collar investigations. In particular, he emphasized that DOJ’s investigations would be speedy and focused. To aid in that goal, he called upon defense counsel to promptly produce documents when requested, identify key evidence, make witnesses available, and narrow disagreements so that parties can swiftly raise issues after parties reach an impasse. Galeotti stressed that quick, efficient investigations are only possible if subjects and targets of those investigations cooperate.

CONCLUSION

Galeotti’s remarks echo the overarching white-collar policy goals propounded by the new administration: efficiency, domestic focus, and cooperation with investigators. Companies that act proactively before an investigation and cooperate with remediation efforts after an investigation will benefit from this new guidance. And DOJ will turn its focus towards individual conduct that affects participants in the United States markets.

Sher Tremonte LLP will continue to monitor developments related to the DOJ Criminal Division’s white-collar enforcement policies. If you have any questions about these policies or your obligations, please contact us. Written by partner Brian Kidd and associate Sam Prose.