Summary of Federal Laws

Miscellaneous Laws                                                        

Compliance Partners

General Counsel

Associate General Counsel for Policy and Compliance

 

Federal Sentencing Guidelines

Chapter Eight: Sentencing of Organizations from the 2004 Federal Sentencing Guideline Manual
The guidelines and policy statements in this chapter apply when the convicted defendant is an organization. Organizations can act only through agents and, under federal criminal law, generally are vicariously liable for offenses committed by their agents. At the same time, individual agents are responsible for their own criminal conduct. Federal prosecutions of organizations therefore frequently involve individual and organizational co-defendants. Convicted individual agents of organizations are sentenced in accordance with the guidelines and policy statements in the preceding chapters. This chapter is designed so that the sanctions imposed upon organizations and their agents, taken together, will provide just punishment, adequate deterrence, and incentives for organizations to maintain internal mechanisms for preventing, detecting, and reporting criminal conduct.

These guidelines at §8B2.1set forth the requirements for an effective corporate compliance program. The guidelines address the concept of a "Culture of Compliance".  Organizations are vicariously liable under federal criminal law for acts committed by their agents. The definition of organization at 18 USC § 18 includes non-profit organizations.

The seven key elements of an effective compliance program are as follows:

•       Implementing written policies and procedures; 
•       Designating a compliance officer and compliance committee; 
•       Conducting effective training and education; 
•       Developing effective lines of communication; 
•       Conducting internal monitoring and auditing; 
•       Enforcing standards through well-publicized disciplinary guidelines; and 
•       Responding promptly to detected problems & undertaking corrective action.