“In January 2023, Assistant Attorney General for the DOJ’s criminal division, Kenneth Polite, Jr., announced the most significant changes to the CEP [Corporate Enforcement Policy] since 2017 with the addition of more incentives for companies to avoid prosecution. The policy changes provide companies new incentives for self-disclosure, cooperation, and remediation.

If aggravating circumstances are present, a company generally will not qualify for a presumption of a declination to prosecute. But under the revised CEP, prosecutors may nonetheless determine that a declination is the appropriate outcome if the company can demonstrate that it has met each of the following three factors:

• The voluntary self-disclosure was made immediately upon the company becoming aware of the allegation of misconduct;
• At the time of the misconduct and the disclosure, the company had an effective compliance program and system of internal controls that enabled the identification of the misconduct and led to the company’s voluntary self-disclosure; and
• The company provided extraordinary cooperation with the DOJ’s investigation and undertook extraordinary remediation.”

  -- January, 2023 by John Kim & Megan Gilberg, J.S. Held’s Global Investigations practice

Compliance related issues are almost inevitable in today’s climate of increased identity fraud and increased money laundering, along with a newly increased focus on discriminatory pricing. While dealers (in the vast majority of the cases) never end up on the receiving end of a Compliance related prosecution through any intentional acts, with an increasingly active Consumer Finance Protection Bureau (CFPB) and Fair Trade Commission (FTC) it is still likely that something “bad” will happen.

Having  a complete and aggressive Compliance Program in place will aid dealers in two ways. First, having that will further substantially reduce the probability of a Compliance complaint. Secondly, and even more importantly perhaps, as is illustrated in the quote that starts this, having a full program in place will help “for a presumption of a declination to prosecute”.

While a full and aggressive Compliance Program is not actually all that complicated, it absolutely does require the absolute implementation and ongoing awareness and enforcement of:

·      Having a fully trained, active, and engaged Compliance Officer

·      A complete, up to date, and properly executed set of Compliance Manuals: Red Flags, Disposal, OFAC, Safeguards, USA Patriot Act

·      Full training of all relevant employees and contractors which is updated and repeated on a regular basis

·      Demonstrable proof that all compliance standards are being met with regular documented inspections and conversations

While not inherently difficult, accomplishing these steps requires the proper tools and management commitment.

It is well worth the effort – a single prosecution, even if it ultimately is found to be false, will cost way more than the entire cost of implementing and maintaining a comprehensive Compliance Program.

Just do it!

Much of this is covered in our book. Our Comprehensive Compliance Program provides the manuals, training, and more. Our current Summer Special puts it all together with the book, the program, and a training video (the Comprehensive Program contains a Training Deck – the video makes ongoing training easier.)

We are happy to announce exciting times at Shaw Consulting US, LLC. We absolutely remain committed to live training and consulting for recreational dealers across the US – we value you and our live time with you.

We have now launched our online store, with digital and audio/video products for helping dealers maximize F&I profit and minimize Compliance risk, is now (oh, and we also have something for those who just want to have some fun with great Texalian food.)

You can visit the full store by just clicking here.

For any of the products (you can just click on the product to see a full description – no obligation until you actually buy), use the code MCZF3Q6X75FX for a 10% discount in June.

Profit Magic - The Book – This digital book is a comprehensive guide to maximizing F&I Profit while minimizing Compliance risk - and making the two complementary. It retails for $24.99. Click here for the details.

Sauce and More With Love – This great Italian digital cookbook written by a Texan contains secret family recipes revealed along with tips, stories, and fun – great for after work or your day off.  It retails for $13.99 - click here for the details .

The Comprehensive Compliance Program – Comprehensive Compliance (in digital form) contains the full set of Compliance Manuals, a Compliance training deck, a Compliance Training Exam (complete with answers), and a Compliance inspection checklist.  It sells for $1,799.00. Click here for the details.

The Compliance Training Video - This video, with a voiceover, complements the Compliance training deck contained in the Comprehensive and it retails for $299.00 - click here for the details.

The Comprehensive Compliance Summer Special – This Summer Special is available through Labor Day 2023. It is a full collection of Profit Magic, The Comprehensive Compliance Program, and the Compliance Training video, and for this summer retails for $899.00 - click here for details.

As always, unlimited consulting is available with and for any of these purchases.

Enjoy!

Shaw Consulting US – Helping You Maximize Profit and Minimize Risk Every Day 

Shaw Consulting US, LLC can help you achieve F&I excellence and Compliance safety – or at least a demonstrable “good faith effort” in Compliance - no matter where you are in the development and/or maturity of your store or stores F&I success / Compliance Effectiveness models. The Founders have helped lead dealers and Service Providers to achieve the highest levels of “per unit F&I profit” and have significant experience and success in equipping and training dealers in Compliance best practices. 

We train, consult, provide tools and documents, and can help source the best people. We can also assist in building out the best systems for delivering both F&I profit and Compliance best practice. Whatever you need, Shaw Consulting US is here for you.

Visit our website (and see our Blog posts) at https://shawconsultingus.com, contact us at info@shawconsultingus.com, find out about our special Comprehensive Compliance Program at compliancespecial@shawconsultingus.com, or just give us a call at (678) 641-8419.

See all of our available digital and audio/video products by clicking here.

Whether it is maximizing F&I Profit or minimizing Compliance risk, or both, or a combination Shaw Consulting US, LLC an help you be your best (https://shawconsultingus.com)