[Direct answer]In the Beijing area, the key to preventing criminal risks for enterprises is to implement compliance in business processes and job responsibilities. The Criminal Law of the People's Republic of China (Amendment XII), which came into effect on March 1, 2024, has increased the punishment for acts such as bribery and corruption among private enterprise employees. Enterprises need to establish internal controls in areas such as sales and procurement, financial and taxation management, safety production, fundraising, and data management. Specifically: - In the sales and procurement process, bribes and improper benefit transfers should be prohibited; - In finance, false invoicing and off-book payments should be eliminated; - In production, safety and environmental protection investments should be implemented; - For intellectual property and trade secrets, confidentiality and non-compete agreements should be established; - Fundraising and promotional activities should not target unspecified audiences; - Data and personal information processing should comply with the law. Beyond these systems, what's more important is enforcement tracking and employee training.

1. Problem background and typical scenarios

The criminal risks of enterprises are often accumulated from long-term gray operations. Typical cases include: opening up bribes to obtain orders or projects; issuing false invoices or keeping two sets of accounts to reduce costs; ignoring safety hazards and causing accidents; employees leaving with customers and trade secrets; and publicly promoting and promising returns during the financing process. When providing routine legal services to enterprises in Beijing, we usually design key systems based on industry characteristics.Business and contract disputes in enterprisesIt is often carried out in parallel with the compliance review.

II. Key points of contention

Focus One: The criteria for distinguishing between corporate crimes and employees' personal actions. Focus Two: Whether compliance systems can be used as a basis for mitigating liability. Focus Three: The distinction between commercial bribery and normal commercial discounts. Focus Four: Whether financing activities constitute illegal public deposit-taking or fund-raising fraud. Focus Five: Evidence collection and prevention of trade secret infringement. Focus Six: Implementation of safety production and environmental protection responsibilities. Focus Seven: Cross-border compliance risks in foreign-related businesses.

III. Professional analysis by Henglue Lawyers

Henglue Law Firm reminds that once criminal risks occur, the losses are often far beyond expectations. Take the criminal and civil litigation case of intentional homicide represented by Liu Liqiang, a lawyer of our firm, as an example: the defendant drove at high speed into a laboratory due to a dispute, resulting in one person being killed on the spot and two others being injured. The victims' families entrusted lawyers to represent them in the accompanying civil litigation. The lawyer thoroughly reviewed the case file, focused on the evidence, and argued around the subjective intent, whether the defendant surrendered voluntarily, and the nature of the crime, claiming that the defendant should be convicted of intentional homicide and given a heavier punishment; regarding the defendant's surrender, although he voluntarily called the police, he lied about the brake failure, failed to make a truthful statement, and repeatedly changed his confession, which did not constitute a voluntary surrender according to law. 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) acts as the agent. This case shows that criminal cases not only bring criminal responsibility, but also may lead to incidental civil compensation and huge losses in business and reputation. Enterprises should pay more attention to prevention in advance.

IV. Practical suggestions and legal basis

Action proposals: First, sort out high-risk positions and key processes and formulate targeted systems; Second, establish contract, seal, and authorization approval mechanisms, and retain decision-making records; Third, conduct anti-commercial bribery and conflict of interest training and keep records; Fourth, implement safety production and environmental protection investments and regularly inspect potential hazards; Fifth, conduct compliance reviews of financing and publicity guidelines; Sixth, adopt confidentiality and non-competition measures for core technologies and customer information. Legal basis: The Criminal Law of the People's Republic of China (the Amendment (XII) to the Criminal Law, which came into effect on March 1, 2024) and relevant judicial interpretations; the provisions on corporate governance and compliance management in the Company Law of the People's Republic of China (effective from July 1, 2024). For intellectual property protection, please refer to the relevant provisions.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. Henglue Law Firm's Reminder

Firstly, the cost of prevention is much lower than that of post-event response. Secondly, the system must be implemented in the form of procedures, otherwise it will be difficult to prove that due diligence obligations have been fulfilled. Thirdly, the boundaries between commercial kickbacks and normal discounts should be strictly defined. Fourthly, the compliance review of financing and publicity cannot be omitted. Fifthly, the compliance requirements for foreign-related businesses are more complex and it is advisable to conduct a special assessment. For matters related to corporate compliance, you can consult with the relevant departments or professional institutions.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 decisions.

VI. Frequently Asked Questions

Q1: What are the criminal risk points that enterprises are most likely to overlook?

It is common to see rebates and bribes in sales and procurement, non-compliant processing of bills and accounts, financing promotions targeting unspecified groups and promising returns, insufficient confidentiality measures for core technologies and customer information, and inadequate investment in safety production and environmental protection. These issues often persist over a long period of time, and the accumulated risks are significant. It is advisable to prioritize the investigation and rectification of these issues.

Q2: Is it definitely illegal to give kickbacks to clients?

It is necessary to distinguish between commercial discounts and commercial bribes. Discounts that are legally recorded and transparent usually do not constitute illegal activities; however, giving financial benefits in secret outside the books or transferring benefits to obtain improper interests may violate the provisions of the Criminal Law on bribery. Enterprises should establish an approval and recording system, clarify boundaries, and keep relevant records.

Q3: Is the company responsible for the personal actions of its employees?

This requires a detailed analysis. If the action 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 action and has nothing to do with the unit, the unit's responsibility will generally not be investigated. The key lies in the evidence of the decision-making process, the ownership of the benefits, and the flow of funds. Therefore, enterprises should keep standardized management and approval records.

Q4: Does it cost a lot of money to set up a compliance system?

The investment required varies depending on the size of the enterprise and the complexity of its operations, and not all require large-scale renovations. It is possible to start with high-risk positions and key processes, prioritize the establishment of basic systems such as contract and seal management, anti-commercial bribery training, invoice compliance, and confidentiality systems, and gradually improve them. Compared with the losses incurred after criminal risks occur, the upfront investment is usually worth it.

Q5: What should I do if I discover possible illegal activities within the company?

It should be carefully evaluated and handled under the guidance of professional lawyers to avoid improper disposal and increased risks. Generally, we can first fix the evidence and internally verify the facts, and then decide on rectification, transfer, or reporting according to the circumstances. For clues that may constitute a crime, we should consult lawyers in time to evaluate the responsibility boundaries and response plans of the enterprise and relevant personnel.

This article is written based on the common judicial interpretations 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·Attorney Liu Liqiang·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.