Monitorship
Also called independent compliance monitor, corporate monitor
A monitorship is the appointment of an independent compliance monitor to oversee a company after it settles criminal or regulatory charges. The monitor assesses the company's controls, recommends improvements and reports to the prosecutor or regulator for a fixed term. The company pays for the monitor and must give full access.
How it works
Monitors are usually imposed through a deferred prosecution agreement, non-prosecution agreement or plea agreement. In the US, the company proposes a shortlist of candidates and the Department of Justice selects one through a standing committee. The agreement sets the monitor's mandate, term and reporting schedule. Under the Criminal Division's 2025 policy, a monitor is imposed only where the benefits outweigh the cost and burden to the company.
The monitor reviews policies, tests controls, interviews staff and issues periodic reports with recommendations, which the company must adopt or explain why not. At the end of the term the monitor certifies whether the compliance programme is working. In the UK, the DPA Code of Practice lets prosecutors include a monitor as a DPA term, with the company paying all costs and the term ending early if controls work.
The rules
Sets when a monitor is warranted, limits monitors to cases where benefits outweigh costs, and sets the selection process; it supersedes the 2009, 2018 and 2023 memos.
Plea agreements, DPAs and NPAs between the Criminal Division and companiesAllows a monitor as a DPA term where fair, reasonable and proportionate, makes the company pay all monitor costs and lets the monitorship end early once controls work.
Organisations entering DPAs in England and WalesCommon questions
Who pays for a monitor?
The company. US agreements and the UK DPA Code of Practice both place the full cost of selecting and paying the monitor on the company.
How long does a monitorship last?
Terms are set in the settlement agreement and commonly run for two to three years. They can be shortened if the monitor is satisfied early, or extended if the company falls short.
Do regulators also appoint monitors?
Yes. Banking and securities regulators impose monitors or independent consultants through consent orders. In the UK, a skilled person review under section 166 of FSMA plays a similar role.
