Anti-Corruption Watch
Don’t Let Your Compliance Program Collect Dust
Lessons from Liberty Mutual
Executive Summary
The Department of Justice’s (DOJ) August 7, 2025, declination of prosecution for Liberty Mutual marked the first Foreign Corrupt Practices Act (FCPA) resolution following the June 9, 2025, DOJ FCPA guidelines.
Despite shifts in enforcement priorities emphasizing national security, transnational crime, and U.S. commercial interests, this case confirms that the DOJ’s core criteria for declinations remain consistent with longstanding policies first introduced in the 2016 FCPA Pilot Program and subsequent corporate enforcement guidance.
Liberty Mutual received a declination after voluntarily and promptly self-disclosing misconduct by its Indian subsidiary, cooperating fully with the DOJ, undertaking timely remediation, enhancing its compliance program, and disgorging $4.7 million in profits tied to the bribery scheme.
The case emphasizes that companies must maintain active, well-resourced, and continuously updated anti-corruption programs integrated into everyday business operations to minimize legal and reputational risks.
The table below compares the five most recent DOJ FCPA corporate resolutions from 2024–2025, measured against the core criteria for declinations established in the 2016 FCPA Pilot Program and subsequent DOJ corporate enforcement guidance.
Comparative Table for 2024-2025:
Recent DOJ FCPA Declinations vs. Key Policy Criteria
| Company | Compliance Efforts | Compliance Program | Accountability | Aggravating Factors | Resolution |
|---|---|---|---|---|---|
| Liberty Mutual 2025 | Self-disclosed (Mar 2024), full cooperation, early remediation | Major upgrades: vetting, oversight, messaging policy | Individuals identified | None | $4.7M disgorgement, Declination |
| Boston Consulting Group 2024 | Self-disclosed (Aug 2024), full cooperation, compliance overhaul | Major program upgrades | None reported | None | Disgorgement & penalties, Declination |
| Proterial Cable America 2024 | Self-disclosed, credited cooperation, remedial enhancements | Enhanced post-disclosure | None reported | None | Disgorgement, Declination |
| AAR CORP 2024 | Partial disclosure (delayed, good-faith), significant cooperation | Improvements recognized | Delay noted | Partial | 45% penalty discount, Declination |
| Sigma Corporation/NSD 2024 | Self-disclosed (May 2024), exceptional cooperation, rapid remediation | Strong, restructured leadership | None reported | None | No prosecution, Declination |
Key Corporate Compliance Takeaways
- Embed Compliance in Leadership Oversight
Ensure anti-corruption compliance remains a priority with regular board and senior management engagement and accountability. - Continuously Update and Document
Regularly review, update controls, and document all significant compliance decisions, disclosures, and remedial actions. - Strengthen Controls Over Third Parties, Payments, and Technology
Apply robust vetting, monitoring, and auditing of third parties and payments, and maintain clear policies on use of communications platforms, including social media and ephemeral messaging. - Self-Disclose Promptly with Legal Guidance
Create processes to escalate potential issues quickly for legal advice regarding disclosure timing, bearing in mind delays may reduce DOJ cooperation credit or be negatively viewed. - Remediate Quickly and Prioritize Individual Accountability
Take swift corrective action addressing root causes, discipline involved personnel, and regularly test your program’s effectiveness through audits or mock investigations.
Maintaining a static or dormant compliance program increases risk exposure. The DOJ’s recent declinations, including Liberty Mutual’s, underscore that proactive, comprehensive, and evolving anti-corruption compliance programs remain vital for successful risk management under current enforcement standards.