To require the Attorney General to issue guidelines delineating when to enter into deferred prosecution agreements, to require judicial sanction of deferred prosecution agreements, and to provide for Federal monitors to oversee deferred prosecution agreements.

Directs the Attorney General to issue guidelines delineating when U.S. attorneys should enter into deferred prosecution agreements, including appropriate factors for U.S. Attorneys to consider in determining whether to enter such agreements.

Requires a deferred prosecution agreement to be approved by a U.S. district court judge or a U.S. magistrate judge in the U.S. district court where criminal charges would be prosecuted by a U.S. attorney.

Requires oversight of a deferred prosecution agreement by a federal monitor appointed by an independent third party (a U. S. district court judge or a U.S. magistrate judge) from a pool of pre-qualified firms or individuals (or both).

Requires the presiding judge in the district court where a deferred prosecution agreement was approved, upon request by a U.S. Attorney, to determine if the deferred prosecution agreement has been breached.