[Direct answer]In the Beijing area, corporate compliance and criminal defense are interconnected but not identical. Criminal defense focuses on cases that have been filed or entered litigation, providing defense around conviction and sentencing, applying for changes in coercive measures, and seeking lenient treatment; corporate compliance services cover pre-event risk prevention, system construction, and post-event rectification, with the part related to criminal cases often referred to as criminal compliance. The two intersect in the compliance rectification of enterprises involved in cases: after an enterprise is suspected of committing a crime, it can carry out compliance rectification if eligible, and strive for non-prosecution or lenient treatment through effective rectification. The provisions of the Criminal Law of the People's Republic of China (amended on December 26, 2020) on corporate crimes, as well as the reform of corporate compliance in cases promoted by procuratorial organs in recent years, have provided an institutional basis for the interconnection of compliance and defense. Therefore, the criminal specialty in compliance services is an extension of broad-sense criminal services, but it is usually completed by lawyers responsible for corporate legal affairs and criminal lawyers working together.

1. Problem background and typical scenarios

Companies are increasingly paying attention to compliance, but often confuse compliance with criminal defense. Typical scenarios include: companies hoping to establish a compliance system to prevent criminal risks; hoping to avoid prosecution through rectification after being suspected of minor crimes; and needing special compliance reviews in areas such as bidding and tendering, data, environmental protection, and taxation. When handling corporate criminal cases in the Beijing area, lawyers often consider both compliance rectification and defense strategies at the same time.Intellectual property protection and corporate lawAndCriminal defense and criminal case filingTherefore, business collaboration is becoming increasingly common.

II. Key points of dispute

Focus One: How to delineate the boundaries between compliance-related business and criminal defense; Focus Two: Which cases and conditions are applicable to criminal compliance rectification; Focus Three: Whether the compliance system can effectively reduce criminal risks; Focus Four: How to link compliance rectification with guilty pleas, restitution, and settlements; Focus Five: How to divide and cooperate between corporate lawyers and criminal lawyers. Clarifying these issues will help enterprises rationally allocate legal service resources.

III. Professional analysis by Henglue Law Firm

Henglue Law Firm once represented a client in a defense case of intentional injury. The client was detained on suspicion of intentional injury on July 13, 2024, and was approved for arrest on July 26. He was detained in the Beijing Daxing District Detention Center. By the time the client applied for a change in coercive measures, it had already far exceeded the commonly mentioned "golden 37 days" period. After the client's family entrusted the firm's lawyers to act as defense attorneys, the lawyers focused on key points such as the client's admission of guilt and remorse, obtaining the victim's forgiveness, being a first-time or occasional offender, and posing no social danger. They applied to the procuratorial organ for a review of the necessity of detention in accordance with the law and continued to communicate with the public security organ when the organ refused to change the coercive measures. After review, the procuratorial organ concluded that there was no necessity to continue detention and ultimately decided to change the coercive measures to bail pending trial. This case reflects the practical logic of criminal law practice: whether it's defense or compliance rectification, the core is to focus on facts, circumstances, and risks, and strive for lenient treatment through institutionalized and evidence-based methods. For enterprises, establishing a compliance system in advance can prevent risks before a case is filed; once involved in a case, post-incident compliance rectification and defense strategies need to be coordinated to form a complete response plan. This case was handled by Beijing Henglue Law Firm.Lu XiaoxueThe attorney (practice certificate number: 11101202311685747, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action recommendations: First, distinguish between pre-compliance and post-defense and allocate resources accordingly; Second, conduct special compliance reviews in high-risk areas such as taxation, data, environmental protection, and bidding and tendering; Third, improve internal approval, traceability, and reporting mechanisms to establish verifiable compliance records; Fourth, promptly assess whether there are conditions for compliance rectification after being involved in a case and advance it in conjunction with defense strategies; Fifth, establish a coordination mechanism with regular lawyers and criminal lawyers to avoid working in isolation. Legal basis: The provisions on corporate crime in the Criminal Law of the People's Republic of China (amended on December 26, 2020); The provisions on non-prosecution and lenient treatment in the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018); The provisions on corporate governance and compliant operations in the Company Law of the People's Republic of China (amended on December 29, 2023). For reference on corporate compliance, please refer to the following documents:Intellectual property protection and corporate lawFor cases involving criminal defense, you can refer to the following materials for reference.Criminal defense and criminal case filingThe specific application shall be subject to the currently effective laws, regulations, and judicial rulings.

5. Henglu Law Firm's Reminder

Firstly, compliance focuses on prevention beforehand, while defense focuses on response afterward, and the two cannot replace each other. Secondly, there are applicable conditions for criminal compliance rectification, which is not suitable for all cases. It should be evaluated as early as possible. Thirdly, compliance records themselves are evidence. The more standardized the daily approval and traceability are, the more conducive it is to illustrate the enterprise's management status. Fourthly, compliance rectification should be carried out in coordination with such circumstances as pleading guilty and accepting punishment, making restitution, and reaching a settlement. Fifthly, enterprises should establish a coordination mechanism between regular lawyers and criminal lawyers to form a complete plan. For matters involving enterprise compliance, you can consultIntellectual property protection and corporate lawYou can refer to it for contract-related risks when obtaining an overall solution for the serviceBusiness and contract disputes in enterprises.

VI. Frequently Asked Questions

Q1: Is corporate compliance part of criminal law practice?

The scope of compliance business is quite extensive. Among them, the part related to the prevention and rectification of criminal risks is usually called criminal compliance, which is an extension of broad-sense criminal business; the remaining parts, such as contract compliance, data compliance, and labor compliance, are usually handled by corporate lawyers. The two intersect in the compliance rectification of enterprises involved in cases, which requires the cooperation of criminal lawyers and corporate lawyers to complete, and cannot be simply equated with each other.

Q2: Can a company avoid being prosecuted if it complies with regulatory requirements and makes necessary rectifications?

Qualified enterprises that carry out compliance rectification after being suspected of committing a crime, and whose rectification is effective, may be subject to a decision of non-prosecution or lenient treatment in accordance with the law. Whether this applies depends on the nature of the case, the harmful consequences, the conditions of rectification, and the admission of guilt and acceptance of punishment, etc., which need to be reviewed by the procuratorial organ in accordance with the law. Enterprises should assess the feasibility as soon as possible and, under the guidance of lawyers, formulate rectification plans and preserve evidence of rectification.

Q3: Can a compliance system prevent criminal risks?

The compliance system cannot completely eliminate risks, but it can significantly reduce the probability of risks occurring and demonstrate after the fact that the company has fulfilled its management obligations. Through internal approval, traceability, training, and reporting mechanisms, key business activities can be incorporated into verifiable processes, reducing the scope for individual decision-making beyond authority and also serving as favorable circumstances for lenient treatment in the event of legal disputes.

Q4: Do small businesses also need to comply with regulations?

It's necessary, but it should be done within one's means. Small businesses don't have to set up a large system at the outset. They can first develop simple systems for high-risk areas, such as contract approval, invoice management, data use, and safe production. The key is to implement the systems and keep records, avoiding just writing them on paper. As the business expands, they can gradually improve the compliance system and develop management capabilities that match the scale of their operations.

Q5: How do compliance and defense work together?

The regular lawyer shall be responsible for system construction and rectification implementation, while the criminal lawyer shall be responsible for procedural response, legal opinions, and seeking mitigating circumstances. Both lawyers shall share factual and evidentiary materials. When handling a case, it is necessary to first assess whether the conditions for compliance and rectification are met, and then decide on the pace of rectification and defense to avoid rectification becoming a formality or conflicting with defense strategies, so as to form a consistent external handling plan.

The above answer is based on the judicial practice in the Beijing area. The adjudicative opinions in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

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·Attorney Lu Xiaoxue·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. If you encounter disputes, please consult a practicing lawyer in time.