Congress has taken the first step in its plans to reform corporate governance and crack down on abuses and fraud in Corporate America.

Lawmakers are poised to pass the Fraud Enforcement and Recovery Act, which will bolster the funding and tools available to law enforcement officials to prosecute corporate and other frauds. The House and Senate have both approved versions of the bill with essentially the same language, and the Obama Administration has already indicated it will sign the final bill into law once it hits the President’s desk.

FERA, as the law is being called, does not introduce any significant new ...