[Direct answer]In the Beijing area, corporate criminal legal risk assessments typically focus on several high-risk areas to identify behaviors that may cross criminal red lines. The Criminal Law of the People's Republic of China (the latest amendment of which, Amendment (XII) to the Criminal Law, came into effect on March 1, 2024) imposes stricter regulations on acts such as bribery and corruption among private enterprise employees. The assessment items generally include: financial and invoice management, identifying risks of false invoicing and tax evasion; commercial bribery and anti-corruption, reviewing rebate arrangements in sales and procurement processes; safety production and environmental protection, screening for accident and pollution risks; intellectual property and trade secret protection; data and personal information processing; financing and fund transactions, preventing illegal absorption of public deposits and fund-raising fraud risks; and compliance with tender bidding and related-party transactions. The value of the assessment lies in identifying and rectifying risks in advance, rather than addressing them after the fact.

I. Problem background and typical scenarios

Most enterprises don't realize the importance of compliance until they face criminal risks. Typical scenarios include: sales personnel bribing clients to secure orders; finance departments handling invoices in an unlawful manner; long-standing safety hazards in the production process; enterprises financing unspecified targets and using exaggerated promotional methods; and employees taking client and trade secrets with them when they leave the company to start their own businesses. When providing routine legal services to enterprises in Beijing, lawyers usually conduct a comprehensive audit first, and then design systems for key aspects.Intellectual property protection and corporate lawIt is often implemented in tandem with corporate compliance.

II. Key points of contention

Focus One: How to define the scope of the physical examination: based on industry characteristics or common modules. Focus Two: The distinction between corporate crimes and individual crimes. Focus Three: The distinction between employees' personal actions and the company's will. Focus Four: Whether compliance systems can be used as a basis for mitigating liability. Focus Five: The path of rectification and evidence preservation after identifying problems. Focus Six: Cross-border compliance risks in foreign-related business. Focus Seven: How to balance the results of the physical examination with the protection of trade secrets.

III. Professional analysis by Henglue Law Firm

Henglue Law Firm reminds that the consequences of criminal risks often go beyond criminal liability. Taking a criminal accessory civil action for intentional homicide represented by Attorney Liu Liqiang of our firm as an example: The defendant, due to a dispute with staff members, drove his car into the laboratory at high speed, resulting in one person being killed on the spot and two others being injured. The victims' families entrusted lawyers to represent them in the accessory civil action. Through in-depth review of the case file and strict adherence to evidence, the lawyer refuted the defendant's defense arguments regarding subjective intent, voluntary surrender, the victim's fault, and the determination of the crime, and advocated for the conviction of intentional homicide and severe punishment. The court ultimately sentenced the defendant to death for intentional homicide. This case was handled by Beijing Henglue Law Firm.Liu LiqiangThe lawyer (practice license number: 11101200910454358, subject to the document issued by the judicial administrative organ) acted as the agent. This case shows that criminal cases not only involve criminal responsibility, but may also lead to accompanying civil compensation and huge operational losses. Therefore, enterprises should pay more attention to preventive measures and compliance checks in advance.

IV. Practical suggestions and legal basis

Action recommendations: First, make a risk list and conduct a check by business and position; Second, improve the management of bills, contracts, and seals, and retain decision-making and approval records; Third, establish a system against commercial bribery and conflicts of interest, and clearly prohibit prohibited behaviors; Fourth, strengthen safety production and environmental protection investments, and implement training and inspections; Fifth, conduct a compliance review of financing and publicity methods; Sixth, promptly rectify problems and preserve evidence upon their discovery. Legal basis: The Criminal Law of the People's Republic of China (Amendment (XII) to the Criminal Law, effective March 1, 2024) and relevant judicial interpretations; The Company Law of the People's Republic of China (effective July 1, 2024) regarding corporate governance and compliance management. For enterprise governance, you can refer to the relevant provisions.Business and contract disputes in enterprisesFor those involved in 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. Henglue Law Firm's Reminder

Firstly, the significance of physical examinations lies in detecting potential problems in advance, rather than just going through the motions of the checkups. Secondly, the distinction between corporate crimes and individual misconduct requires evidence to support it. Thirdly, compliance systems cannot just remain on paper; they need to be implemented in actual workflows. Fourthly, there are more risk points in cross-border business operations, so it is advisable to conduct special assessments for them. Fifthly, after identifying risks, we should rectify them as soon as possible and document the evidence. For issues related to corporate compliance, you can refer to the following resources for further guidance:Intellectual property protection and corporate lawConsultation. The rules on statute of limitations and evidence shall be subject to the currently effective laws, regulations, and judicial rulings.

VI. Frequently Asked Questions

Q1: What does a criminal law risk assessment typically cover?

It usually covers modules such as taxation and invoices, commercial bribery and anti-corruption, safe production and environmental protection, intellectual property and trade secrets, data and personal information, financing and capital transactions, tendering and bidding, and related-party transactions. The inspection methods include reviewing contracts and account books, interviewing key positions, organizing business processes, and identifying behaviors that may touch upon criminal red lines.

Q2: Having implemented a compliance system, can I avoid being held responsible if something goes wrong?

It may not necessarily lead to exemption from liability, but it could be a favorable factor. Compliance systems and implementation records can prove that the enterprise has fulfilled its obligations of reasonable management and due diligence, which helps to distinguish between the unit's responsibility and the employee's personal behavior, or serve as a mitigating factor in sentencing. The prerequisite are that the system is truly implemented, with evidence of training and implementation, rather than being a hastily prepared document.

Q3: Which fields carry the highest risks?

Business bribery typically focuses on the sales and procurement stages, financial document processing, financing and fundraising methods, safety production and environmental protection, infringements of intellectual property rights and trade secrets, and other areas. The specific risks vary depending on the characteristics of the industry and the business model. It is recommended to identify high-risk positions and key processes based on your own business operations, and prioritize rectification efforts.

Q4: Is the company responsible for the personal actions of its employees?

This requires a specific analysis. If the behavior reflects the unit's will, is carried out for the unit's interests, and is implemented in the unit's name, it may constitute a crime committed by the unit; if it is an employee's personal behavior and has nothing to do with the unit, the unit's responsibility will generally not be pursued. In practice, it is often necessary to judge based on the decision-making process, the ownership of the benefits, and the flow of funds. Evidence preservation is very crucial.

Q5: Will I be held accountable if any problems are found during the physical examination?

The physical examination itself is an internal self-inspection and does not necessarily lead to accountability. It is usually more beneficial to proactively identify and promptly rectify and eliminate potential risks than to passively investigate. However, if it involves criminal clues, the enterprise should carefully evaluate the handling approach and, if necessary, handle it in accordance with the law under the guidance of professional lawyers to avoid exacerbating risks due to improper handling.

The above answer is based on the judicial practice in the Beijing area. The judicial interpretation 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, so as to avoid missing the statutory time limit. →Criminal defense legal services·Attorney Liu Liqiang·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and publicly available 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.