In August 2025, the U.S. Department of Justice (DOJ) declined to prosecute an insurance company for alleged violations of the Foreign Corrupt Practices Act (FCPA), marking the first action of its kind since the DOJ paused FCPA prosecutions earlier this year. DOJ’s decision came in response to the company’s voluntary self-disclosure. Importantly, this decision allows the company to avoid criminal charges in connection with bribes allegedly paid by employees of its foreign subsidiary for customer referrals for products. As part of the resolution with DOJ, the company will disgorge approximately $4.7 million in profits that are tied to the misconduct.
Voluntary Disclosure of FCPA Violations
According to a letter issued by the DOJ’s Criminal Division and the U.S. Attorney’s Office for the District of Massachusetts, employees of the foreign subsidiary paid roughly $1.47 million in bribes to officials at six state-owned banks in India. These payments were allegedly made through third-party intermediaries and were disguised as marketing expenses.
The scheme reportedly generated $9.2 million in revenue and $4.7 million in profits. The parent company uncovered the misconduct during an internal investigation and voluntarily disclosed the findings to the DOJ’s Fraud Section in March 2024.
Why the DOJ Declined Prosecution
The DOJ cited several factors in its decision to decline prosecution:
- Voluntary self-disclosure of the misconduct
- Full cooperation with government investigators
- Remedial actions, including termination of involved employees
- “Root-cause” analysis of the misconduct
- Compliance program enhancements, such as improvement of oversight of company payments to third parties
- Tightening of policies, especially around the use of messaging apps for business communications
- Agreement to disgorge the gains obtained through the misconduct
Policy Shift
In May 2025, the DOJ Criminal Division announced that “overbroad and unchecked corporate and white-collar enforcement burdens U.S. businesses and harms U.S. interests.” The May 2025 memo signaled modifications to DOJ’s Corporate Enforcement and Voluntary Self-Disclosure Policy in ways that would make paths to potential declination and possible fine reductions related to the company’s cooperation and remediation “more easily understandable.” The memo instructs DOJ’s white-collar criminal prosecutors that “additional benefits are available to companies that self-disclose and cooperate.” In June 2025, the DOJ issued revised guidelines that prioritize investigations with implications for U.S. competitiveness, national security, and transnational cartels. This August 2025 DOJ decision is the first known declination in the current Administration (it follows a pause in FCPA enforcement since February 2025). The May 2025 memo, the June 2025 guidelines, and the declination at issue are all consistent with each other.
Declinations are not unique to the current Administration. A corporate FCPA declination occurred nearly a year ago, when a management consulting firm avoided prosecution for alleged bribery of Angolan officials and agreed to disgorge $14.4 million. However, this declination and DOJ’s recent policy announcements indicate a willingness by DOJ to consider alternatives to prosecution and criminal enforcement if companies are proactive in disclosing and remediating potential misconduct.
What this Means for You
This declination decision highlights the DOJ’s emphasis on corporate self-disclosure and cooperation in resolving FCPA matters. Companies might therefore consider the following steps:
- Conduct regular internal audits and risk assessments
- Strengthen third-party oversight and payment controls
- Review policies on communications (such as messaging apps) and recordkeeping
- Ensure swift and transparent reporting of potential misconduct
Contact us
If you have questions about FCPA enforcement or corporate compliance, please contact Cormac Connor, Tanner Cook, Kimberly Gutierrez, or your Husch Blackwell attorney.