Voluntary Self-Disclosure Program Offers Companies Declination From Financial Crime Prosecution

The Southern District of New York has launched an updated Corporate Enforcement and Voluntary Self-Disclosure Program that offers companies a conditional declination of criminal prosecution within two to three weeks of self-reporting qualifying fraud and financial misconduct.

A Wilmer Hale client alert details the program, which the US Attorney for the Southern District of New York announced on February 24, 2026.

The program represents a significant shift in how companies can manage criminal exposure by acting quickly and cooperating fully. It targets corporate fraud, including securities, commodities, and digital asset fraud. It also covers false statements to auditors or regulators, and willful violations of federal securities and commodities laws.

To qualify, a company must self-report upon discovery, before the company learns of the existence of a government investigation, and independently of any preexisting obligation to report to the Department of Justice.

Full cooperation, three years of ongoing criminal conduct reporting, and complete restitution to victims are required. Notably, prior whistleblower reports, press coverage, or self-reports to other agencies do not automatically disqualify a company.

The two-stage process delivers a conditional declination letter first, with a final declination issued upon satisfaction of all cooperation, remediation, and restitution obligations. No criminal fines, forfeitures, or monitors are required if conditions are met. However, aggravating factors, including any nexus to foreign corruption, sanctions evasion, or terrorism, may disqualify a company entirely, which makes Foreign Corrupt Practices Act (FCPA) violations a potential gap in the program’s coverage.

In-house counsel should be aware that the program creates opportunity and risk. The incentive for early disclosure is real, but identifying potentially culpable employees before an internal investigation is complete creates meaningful legal exposure.

Legal teams should review compliance infrastructure, assess whether existing internal investigation protocols support the timeliness requirements, and evaluate the resource commitment needed to sustain three years of reporting obligations.