Among compliance cognoscenti, the U.S. Sentencing Commission's "organizational sentencing guidelines" are the Holy Scriptures.

Promulgated in 1987 and effective since 1991, the guidelines basically outline the elements of a corporate compliance program, creating a sentencing credit for organizations that put in place "effective programs to prevent and detect violations of law."

Recently, an "Ad Hoc Advisory Group" that was established to help redefine such corporate compliance programs released its recommendations for changes to the guidelines.

Among the proposed changes is a new, stand-alone guideline that would "describe more fully those essential attributes of successful compliance programs." The new guideline emphasizes monitoring, auditing, assessing and evaluating programs. In addition, the roles of the organization's management and leadership are reinforced; gone are the ambiguities regarding what defines an "effective compliance program" and on whom responsibility falls.

Last week, the U.S. Sentencing Commission voted unanimously to amend the existing organizational guidelines to make more stringent the guidelines' criteria for effective compliance and ethics programs. The new standards for compliance and ethics programs are more rigorous, and put greater responsibility on boards of directors and executives for the oversight and management of compliance programs.

In particular, directors and executives now "must take an active leadership role for the content and operation of compliance and ethics programs."

Companies that seek reduced criminal fines now must demonstrate that they have identified areas of risk where criminal violations may occur, have trained high-level officials as well as employees in relevant legal standards and obligations, and have provided compliance officers "sufficient authority and resources to carry out their responsibilities."

The new guidelines will be submitted to Congress, and would take

effect Nov. 1, 2004, unless Congress disapproves them during a six-month review period.