[Direct answer]In the Beijing area, the cycle of conducting a criminal legal risk assessment primarily depends on three factors: the scale and complexity of the enterprise, the depth of the assessment scope, and the completeness of the materials. In practice, the process typically proceeds in four stages: 1. **Research and interviews**: Understanding the business model, organizational structure, and key positions, and identifying major risk points. This stage accounts for approximately 30% of the total workload. 2. **Material collection and review**: Including contracts and bidding documents, financial transactions and expense certificates, internal approval and management systems, internal emails, and communication records. This stage involves the most work, and the completeness of the materials directly determines the cycle time. 3. **Risk identification and classification**: Comparing business processes with legal norms to determine the nature and severity of risks. 4. **Report preparation and rectification recommendations**: Including risk lists, scenario analysis, and priority recommendations for rectification. For routine annual assessments covering major business modules, the process can typically be completed within several weeks. For urgent investigations in response to specific reports or clues, the focus may be on a single business chain, with preliminary conclusions provided within a few days. It should be noted that the value of the assessment lies not in the report itself, but in whether the subsequent rectification measures are effectively implemented. Therefore, it is recommended to include rectification tracking within the scope of the service.Criminal defense and criminal case filingThe column provides specific explanations about the criminal compliance check for enterprises.

I. Problem background and typical scenarios

Companies seeking advice on such issues are often motivated by three factors: first, they receive reports or internal audit alerts and are concerned about potential criminal risks, so they want to first assess the situation; second, with increasingly stringent industry supervision, they hope to proactively screen risks to reduce the likelihood of being investigated; third, they are already facing disputes and want to understand the worst-case scenarios and potential responses. Common concerns include whether the review will expose problems, whether the report will be disclosed externally, and how to handle risks once they are identified. These concerns often affect the cooperation of enterprises, prolonging the process. In practice, the most common reason for uncontrollable timeframes is insufficient preparation of materials: enterprises fail to systematically organize contracts and approval materials, forcing lawyers to repeatedly request them, and prolonging the investigation and interviews; or the interview subjects are unclear, with key personnel being arranged at the last minute, leading to information gaps. Another common misconception is treating the review as a one-time project. In reality, the control of criminal risks requires continuous updating, as changes in business models, organizational adjustments, and regulatory amendments will all introduce new risk points. For the sustainable operation of compliance systems, reference can be made to the following:Intellectual property protection and corporate lawColumn.

II. Key points of contention

Focus 1: How to define the scope of the physical examination—should it cover all business operations or focus on high-risk areas? Focus 2: The legality and cooperation of data retrieval, and how to address internal concerns within the enterprise. Focus 3: The usage boundaries of the reports and confidentiality arrangements. Focus 4: The criteria for risk level classification and the prioritization of rectification measures. Focus 5: The handling method when encountering suspected criminal clues, and whether to immediately transfer the case. Focus 6: The feasibility of rectification measures and cost evaluation. Focus 7: The connection between the physical examination conclusions and subsequent administrative or criminal procedures. Focus 8: The frequency of physical examinations and dynamic update mechanisms. The specific rules mentioned above shall be subject to the currently effective laws, regulations, and judicial rulings.

III. Professional analysis by Henglue Law Firm

From the practical experience of handling criminal and corporate compliance cases at our firm, the efficiency of the due diligence mainly depends on the preparation work, rather than the pace of work on the lawyer's side. The first determining factor is whether the enterprise can complete three tasks before starting: clarifying the business model description, sorting out the key positions and approval chains, and compiling a list of available materials. If these three tasks are done well, the subsequent investigation and interviews can be completed in one go; otherwise, lawyers will need to repeatedly inquire and wait, and the cycle will be prolonged exponentially. The second determining factor is scope management. A common failure mode in practice is to require full coverage from the start, only to dwell on the superficial aspects of each module, thereby losing the meaning of the due diligence. A more effective approach is to first conduct a rapid scan of high-risk links, identify directions requiring in-depth investigation, and then expand the scope in a targeted manner. The third determining factor is the quality of the interviews. Criminal risks often lie in the gap between verbal commitments and actual implementation, such as strict system regulations but casual actual implementation, or complete approval processes but bypassing situations. Therefore, the interviews should cover frontline staff rather than just listening to management descriptions, and attention should be paid to the mutual corroboration of interview information. It should be noted that situations involving suspected crimes may also arise during the inspection. The professional approach is to promptly initiate an assessment to determine whether it is necessary to report to the case-handling authorities and how to secure evidence, in order to avoid expanding the risks due to improper handling. This case is handled by Beijing Henglu Law Firm.Liu LiqiangAttorney (Practice Certificate No.: 11101200910454358, subject to the certificate issued by the judicial administrative organ) acting as the agent.

IV. Practical suggestions and legal basis

Action suggestions: 1. Determine the scope and objectives of the physical examination in advance, distinguishing between comprehensive physical examinations and specialized screenings; 2. Establish an internal coordination team, clarify the contact persons and those responsible for materials; 3. Prepare materials by module, including contracts, bidding documents, financial vouchers, approval records, system texts, and internal emails; 4. Arrange interview plans covering frontline positions; 5. Clarify the confidentiality and usage boundaries of the report; 6. Agree on rectification suggestions and follow-up re-examination arrangements; 7. Promptly evaluate and handle the suspected criminal clues discovered. Legal basis: - Relevant provisions of the Criminal Law of the People's Republic of China (amended by the Ninth Amendment, effective November 1, 2015); - The Anti-Unfair Competition Law of the People's Republic of China (amended in 2019, effective April 23, 2019); - The Bidding and Tendering Law of the People's Republic of China (amended on December 27, 2017, effective December 28, 2017); - Specific compliance requirements shall be subject to the currently effective regulations.

5. Henglu Law Firm's Advice

First, the goal of the physical examination is to detect problems in advance, so don't treat it as a tool to deal with inspections. Second, the quality of the preparation of materials directly determines the cycle. Enterprises should regard internal review as part of the physical examination. Third, interviews should hear the voices from the frontline. Listening to the descriptions of management alone is prone to distortion. Fourth, when discovering clues of suspected crimes, consult as soon as possible and don't try to digest them on your own. Fifth, the report should clearly define the scope of use to avoid being improperly disseminated. Sixth, rectification requires responsible persons and timetables, otherwise the report is likely to remain on paper. Seventh, the physical examination is not a one-time project. It is recommended to establish an annual update mechanism. Eighth, for listed companies, state-owned assets, or government projects, regulatory and disciplinary procedures should also be considered simultaneously. For the management of daily contract risks in enterprises, you can refer to it for reference.Business and contract disputes in enterprisesColumn.

VI. Frequently Asked Questions

Q1: How long does a criminal risk physical examination typically take?

Regular annual physical examinations covering major business modules can usually be completed within a few weeks; special investigations targeting specific reports or clues can focus on a single business chain and provide preliminary conclusions within a few days. The duration mainly depends on the enterprise's scale, business complexity, and the completeness of the information. It is recommended to complete the internal data sorting before starting the investigation, which can significantly shorten the duration.

Q2: What materials does the company need to provide for the physical examination?

These usually include a description of the business model, organizational structure and job responsibilities, contracts and bidding documents, financial transactions and expense vouchers, internal approval and management systems, internal emails and communication records, historical disputes and handling records, etc. The more complete the information is, the more accurate the risk identification will be. If some information is indeed missing, it should be stated at the start to avoid conclusions being biased due to information gaps.

Q3: Will the medical examination report be kept confidential?

It should be kept confidential. Lawyers are legally obligated to maintain confidentiality, and the contract should clearly specify the scope of use of the report, the personnel who may access it, and the storage methods. If it is necessary to provide the report to third parties for regulatory reporting or internal auditing purposes, the enterprise's prior written consent should be obtained, and the disclosed content should be clearly defined to prevent the report from being improperly disseminated.

Q4: What should I do if a physical examination reveals that I am suspected of committing a crime?

It is necessary to promptly initiate a professional assessment to determine whether it is necessary to report to the case-handling authority and how to secure evidence. In practice, a common mistake is to first handle the matter internally and then decide after investigation, which may either lead to delays or constitute concealment. It is recommended to immediately stop relevant internal actions and let lawyers coordinate them. If necessary, the case should be transferred to the relevant authority in accordance with the law and cooperate with the investigation.

Q5: Is it enough to have a physical examination once?

It is not advisable to complete all of them at once. Changes in business models, organizational adjustments, the development of new businesses, and regulatory amendments will all bring new risk points. It is recommended to combine physical examinations with the follow-up of rectification measures, establish an annual physical examination mechanism combined with special inspections of major issues, and embed compliance requirements into business processes and approval authorities in order to establish long-term control mechanisms.

The above Q&A is mainly based on the judicial practice in Beijing. There may be differences in the interpretation of judgments in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with 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. In case of disputes, please consult a practicing lawyer in time.