[Direct answer]It is recommended to proceed in five steps: risk identification, system design, execution control, training and reporting, and internal investigation and rectification. According to Articles 30 and 31 of the Criminal Law of the People's Republic of China, if a company, enterprise, institution, government agency, or organization commits acts that endanger society and are legally defined as corporate crimes, it shall bear criminal responsibility. The company or organization will be fined, and the directly responsible supervisors and other directly responsible personnel will be sentenced to criminal punishment. Therefore, the goal of compliance and internal control is to both prevent corporate crime risks and reduce personal liability. Key areas typically include finance and taxation, bidding and commercial bribery, data and personal information, safety production and environmental protection, intellectual property, and export tax rebates. Enterprises in Beijing can also combine the third-party supervision and evaluation mechanism in the compliance reform of involved enterprises to improve their rectification plans and system construction.

1. Problem background and typical scenarios

When enterprises implement criminal compliance and internal control, it often stems from several triggering factors: stricter industry supervision, frequent investigations into similar cases; employee involvement in criminal cases, which makes management worried about being held accountable; the need to provide compliance certificates when participating in bidding or government procurement; and being required to explain compliance status when planning to go public or raise funds. Many enterprises' problems do not lie in the lack of systems, but rather in the fact that the systems remain on paper and lack implementation traceability, making it impossible to prove that they have fulfilled their management obligations once a case occurs. Therefore, the key to internal control construction lies in implementing the systems into processes and records, so that the systems can withstand scrutiny during investigations. You may want to learn more about this first.Criminal defense and criminal case filingThe content of the service.

II. Key points of contention

The controversy focuses on four aspects: Firstly, the boundaries of compliance and internal control. Enterprises cannot completely exempt themselves from liability through systems, but they can reduce risks and responsibilities; Secondly, the gap between systems and implementation. The textual systems are not reflected in the business process, making it difficult to form a basis for defense; Thirdly, the priority of high-risk areas. The criminal risks of different business models vary greatly, and resources need to be allocated according to the risk order; Fourthly, traceability and evidence. Approval records, training sign-in, internal investigation reports, and other materials are important bases for judging whether management responsibilities have been fulfilled. The above problems determine the effectiveness of compliance construction, rather than the amount of investment. Therefore, attention should be focused on implementation and evidence.

III. Professional analysis by Henglue Law Firm

Henglue Law Firm has developed a work method focusing on evidence review and procedural legality in handling criminal cases, which is also applicable to corporate criminal compliance. In a criminal case of intentional homicide with accompanying civil litigation, the firm's lawyers represented the victim's family. By thoroughly reviewing the case file and focusing on evidence, they refuted the defendant's defense arguments one by one regarding subjective intent, the establishment of voluntary surrender, and the victim's fault, arguing that the defendant should be convicted of intentional homicide and subject to heavier punishment. The court ultimately adopted the lawyers' arguments, sentencing the defendant to death for intentional homicide and supporting the request for incidental civil compensation. This case was handled by Beijing Henglue Law Firm.Liu LiqiangAttorney (Practice Certificate No.: 11101200910454358, subject to the document issued by the judicial administrative organ). Although this case involves personal crimes, the methodological lesson is that whether it's defense or compliance, the key is to clarify the correspondence between actions and evidence. In the corporate context, this means aligning the key nodes in the business process with the requirements for approval, record-keeping, and review, so that the company can prove that it has established and implemented effective internal controls when facing investigations. In practice, Henglue Lawyers typically start by conducting business reviews and risk interviews, then formulating risk lists and system revision proposals. Finally, they promote implementation through training and spot checks, and assist with internal investigations to address violations that have occurred, forming a closed loop from prevention to response.

IV. Practical Suggestions and Legal Basis

Action list: First, sort out the business model and job authorizations, and identify high-risk links; Second, develop special systems and operating procedures for key areas, clarify approval levels and prohibited lists; Third, establish a traceability mechanism to preserve records of approvals, contracts, invoices, and acceptance; Fourth, provide regular training and keep attendance and assessment materials, and establish internal reporting channels; Fifth, conduct internal investigations promptly when violations occur, secure evidence, and implement rectification. For issues related to contract and transaction management, you can refer to the relevant guidelines.Business and contract disputes in enterprisesFor those interested in intellectual property and legal support, please feel free to contact us.Intellectual property protection and corporate lawLegal basis: Article 30 and Article 31 of the Criminal Law of the People's Republic of China (currently in force), Article 7 of the Anti-Unfair Competition Law of the People's Republic of China (amended and implemented on April 23, 2019), the Data Security Law of the People's Republic of China (implemented on September 1, 2021), and the Personal Information Protection Law of the People's Republic of China (implemented on November 1, 2021). The specific application shall be subject to the currently effective laws and regulations and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, compliance and internal control are not just a piece of paper. The key lies in whether we can provide evidence of implementation. The system and evidence need to corroborate each other. Secondly, priority should be given to key areas, including financial and tax documents, business transactions, data compliance, and safe production. Thirdly, the prevention of corporate crime not only concerns the enterprise, but also the directly responsible supervisors and other directly responsible personnel. Management should pay attention to personal risks. Fourthly, if employees are involved in criminal cases, internal investigations should be initiated immediately to avoid the loss of evidence or the expansion of responsibilities. Fifthly, enterprises involved in cases can seek lenient treatment through compliance rectification, but the rectification must be genuine and effective rather than a formal response. For special compliance rectifications, they can be carried out through specific measures.Special services and other casesThe column gets support.

VI. Frequently Asked Questions

Q1: Can corporate compliance and internal control completely avoid criminal risks?

It cannot be completely avoided, but it can significantly reduce the risk and influence the determination of liability. Enterprises that have established effective internal controls and preserved execution evidence are more likely to demonstrate that they have fulfilled their management responsibilities when employees violate regulations or are involved in criminal activities, thus reducing the unit's or individual's liability. The value of compliance lies in risk management, not in a promise of exemption from liability.

Q2: Which fields carry the highest risks?

These typically include tax and invoice management, commercial bribery and unfair competition, bidding and government procurement, data and personal information processing, safety production and environmental protection, intellectual property and export tax rebates, etc. The specific priorities should be determined based on the enterprise's business model and transaction partners. It is recommended to sort them based on risk interviews and process analysis.

Q3: Who bears the responsibility for unit crimes?

According to Articles 30 and 31 of the Criminal Law of the People's Republic of China, if a unit commits a crime, the unit shall be fined, and the persons directly in charge of the unit and other persons directly responsible for the crime shall be punished accordingly. Therefore, in addition to the enterprise facing fines, relevant managers may also bear criminal responsibility, and compliance and internal control are equally important for individuals.

Q4: Does compliance rectification help with the case?

In eligible cases, enterprises can strive for lenient treatment through compliance rectification. The rectification should formulate specific measures targeting the exposed risk points, clarify the responsible persons and completion deadlines, and keep the implementation records. Formalized rectification is difficult to gain recognition, and when necessary, third-party supervision and evaluation mechanisms can be used to enhance its credibility.

Q5: How should we handle employees who violate company rules internally?

It is recommended to immediately launch an internal investigation, fix relevant evidence, and assess whether there are criminal risks involved; if necessary, consult professional lawyers to determine whether it is necessary to actively report or cooperate with the investigation. At the same time, we should improve the system and processes, carry out targeted training, and deal with responsible personnel in accordance with the rules to avoid the recurrence of similar problems.

This article is written based on the common judicial interpretation in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, to avoid missing the statutory time limit. →Criminal defense legal services·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In the event of a dispute, please consult a practicing lawyer in a timely manner.