The US Justice Department is pulling back on prosecuting corporate crime, the Wall Street Journal reported. The shift marks a major change in how white-collar crime is handled.

The Treasury has also scaled back scrutiny of US shell companies, the New York Times reported. Together, the moves signal a broader rollback of corporate enforcement.

Critics say the changes let powerful companies off the hook. The American Prospect described the shift as making corporate crime effectively legal.

Supporters argue the old rules were too harsh on business and slowed the economy. Business groups have welcomed the lighter touch.

The changes affect how the department handles fraud, bribery and other business crimes. Enforcement against smaller offenders continues as before.

The debate over corporate accountability is heating up. Watchdog groups warn that weaker enforcement invites more wrongdoing in the years ahead.

The department says it will focus on violent crime and immigration cases instead. Former prosecutors warn that white-collar crime will rise.