[Direct answer]In the Beijing area, the process of promoting non-prosecution for criminal compliance typically involves six stages. The first stage is risk screening and qualitative assessment, which determines whether the involved behavior constitutes a crime, whether it belongs to corporate crime or individual crime, and whether it meets the prerequisites for non-prosecution for compliance. The second stage is to formulate a rectification plan, which focuses on the risk points of the involved behavior and proposes rectification measures from five dimensions: system, process, approval authority, system control, and personnel management. The third stage is to implement the plan and form an evidence chain, including verifiable materials such as system documents, approval records, training records, and system modification explanations. The fourth stage is to cooperate with the case-handling authorities and procuratorial organs in the evaluation and review, and, if necessary, introduce third-party evaluations or hire professional institutions to issue compliance reports. The fifth stage is to enter the probation period, submit the compliance construction situation as required, and accept supervision. The sixth stage is to make a decision on non-prosecution. It should be noted that the types and consequences of non-prosecution vary greatly, with different impacts on corporations and individuals. Whether the conditions are met needs to be comprehensively judged based on the nature of the charge, the amount involved, the subjective malice, whether the defendant admits guilt and accepts the punishment, and the rectification situation. The specific types and conditions of application shall be subject to the current effective laws, regulations, and judicial rulings. For major cases, it is recommended to entrust professional lawyers for evaluation as early as possible to avoid making mistakes in procedural choices.Criminal defense and criminal case filingThe column provides a detailed explanation of corporate criminal compliance and defense services.

1. Problem background and typical scenarios

Companies seeking advice on such issues are often in two situations: first, they have already been investigated for their business operations and are worried about the consequences affecting their operations and credit, hoping to gain lenient treatment through compliance efforts; second, they are not yet involved in cases but engage in high-risk businesses and proactively hope to prevent risks through compliance checks. There are four common concerns: not knowing which crimes are subject to non-prosecution for compliance; what level of rectification is required to be recognized; whether they need to suspend operations during the process; and what will happen if the non-prosecution is not granted. The answers to these questions highly depend on the specific facts of each case, so professional evaluation is indispensable. In practice, there is a common misunderstanding that compliance rectification is just a formal procedure, with companies simply submitting a few documents to meet inspection requirements. In reality, the focus of investigating authorities and prosecution authorities is on whether the rectification truly prevents the recurrence of the involved behaviors, including whether authority has been redistributed, whether the system has set up verification nodes, and whether relevant personnel have completed training and left records. Companies can also refer to the supporting arrangements of their daily legal advisory systems for reference.Intellectual property protection and corporate lawColumn.

II. Key points of contention

The first focus is whether it constitutes a corporate crime, which directly determines the applicable compliance path. The second focus is the nature of the crimes involved, and which of them fall within the scope of application of non-prosecution for compliance reasons. The third focus is the targeted nature of the rectification plan, whether it covers all risk points of the involved behavior. The fourth focus is the completeness of the evidence chain, and how the system documents and implementation records complement each other. The fifth focus is the obligations and cooperation methods during the probation period. The sixth focus is the connection between pleading guilty and accepting punishment and compensation and understanding. The seventh focus is the follow-up impact of the non-prosecution decision, involving records, notifications, and subsequent supervision. The eighth focus is the alternative solutions when the conditions for non-prosecution are not met. The above specific rules are subject to the currently effective laws, regulations, and judicial rulings.

III. Professional analysis by Henglue Lawyers

Judging from the experience of criminal defense and corporate compliance cases, the success or failure of compliance non-prosecution is often determined in the early stages of investigation and review of prosecution, depending on whether the three preliminary tasks can be completed in time. The first task is to accurately assess the facts and responsibilities, including distinguishing between corporate actions and individual actions, dividing decision-making responsibilities and execution responsibilities, and confirming the involved amounts and circumstances. If this stage is done well, it will lay a foundation for subsequent communication. Taking a case involving credit card fraud as an example: In 2022, victim W* was defrauded of 7.1 million yuan and 3.8 million Hong Kong dollars, of which 200,000 yuan was transferred to C*'s ICBC account and Postal Savings Bank account each; victim Y* was defrauded of 220,000 yuan, of which 50,000 yuan was transferred to C*'s account. In the same case, A* provided a postal card and introduced C* to provide an ICBC card. C* and A* respectively withdrew 250,000 yuan of the stolen money to their upstream clients, with C* profiting 500 yuan and A* profiting 200 yuan. At this point, for C*, whether he can be identified as an accomplice, a first-time offender, and his age at the time of the crime directly affect the direction of the handling. The second task is to evaluate and express subjective malice, which requires forming an acceptable argument around whether the perpetrator was aware of the crime, the proportion of profits, whether he was controlled by others, whether he made a truthful confession and repaid the losses, etc. The third task is to simultaneously initiate rectification. Many enterprises only start rectification after receiving a notice, which in effect misses the best opportunity. A more valuable approach is to immediately initiate rectification and simultaneously fix the evidence. When handling such cases, our firm usually adopts a three-pronged approach of evaluation, rectification, and procedural advancement: the evaluation conclusion determines the strategic direction, the rectification evidence determines the persuasiveness, and the procedural advancement determines the final timing. This case was handled by Beijing Henglu Law Firm.Liu LiqiangThe attorney (practice certificate number: 11101200910454358, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

Action suggestions: 1. Complete an independent assessment of the facts and responsibilities involved in the case as soon as possible; 2. Distinguish between corporate crimes and individual crimes, and clarify the boundaries of responsibility; 3. Design a rectification plan centered on the actions involved in the case, covering systems, processes, authority delegation, IT systems, and training; 4. Consolidate evidence of the rectification implementation, including institutional documents, approval records, training attendance and assessments, and explanations of system modifications; 5. Actively communicate with investigating authorities and procuratorial organs, and submit explanations of compliance-building efforts; 6. Properly handle matters related to guilty pleas, compensation, and reconciliation; 7. Clarify obligations to cooperate during the probationary period and the reporting schedule; 8. Prepare alternative plans in case of non-compliance with requirements. Legal basis: - Provisions on corporate crimes and punishments in the Criminal Law of the People's Republic of China (amended by the Ninth Amendment to the Criminal Law, effective January 1, 2015); - Provisions on non-prosecution in the Criminal Procedure Law of the People's Republic of China (amended in 2018); - Relevant regulations on corporate-related cases handled by procuratorial organs shall be based on the currently effective documents.

5. Henglu Law Firm's Advice

First, non-prosecution for compliance violations is not automatically applicable. The key lies in whether the rectification is genuine, effective, and supported by evidence. Second, it's better to start the rectification as early as possible, as the probative force of materials submitted after the fact is significantly weaker. Third, distinguish between the responsibilities of the unit and individuals to avoid magnifying the consequences of involving all employees. Fourth, maintain business continuity during the rectification process to avoid causing operational disruptions and triggering new problems. Fifth, promote the rectification and plea bargaining in tandem. Inconsistent statements will undermine the persuasive effect. Sixth, pay attention to the obligations during the probation period. Delayed or unreported compliance may lead to unfavorable consequences. Seventh, don't treat compliance as a one-time project. Systems need to be continuously operated and regularly evaluated. Eighth, for cases involving a large number of people or with significant impact, it's advisable to engage professional lawyers as early as possible to avoid procedural detours. For the management approach to overall legal risks in enterprises, you can refer to the relevant materials.Business and contract disputes in enterprisesColumn.

VI. Frequently Asked Questions

Q1: Can enterprises always successfully seek non-prosecution in criminal cases?

It can't be generalized. Whether it's possible to apply for non-prosecution depends on factors such as the nature of the charge, the amount involved, the subjective malice, whether the defendant admits guilt and accepts the punishment, the situation of restitution, and the effectiveness of rectification. In practice, it's common to strive for a lighter punishment or a lenient determination through sufficient compliance rectification and cooperation. It is recommended that a professional lawyer conduct a case assessment first and then determine the target plan.

Q2: What exactly needs to be changed for compliance rectification?

It usually focuses on the risk points targeted by the actions involved, including clear prohibitive provisions and accountability at the institutional level, increasing approval and review nodes at the process level, redistributing decision-making authority at the authority level, setting up verification and traceability functions at the system level, and providing training and assessments for personnel. The key point is not the number of documents, but whether it can truly prevent similar actions from happening again.

Q3: How long will it take to make the rectification?

It depends on the complexity of the business involved and the efficiency of decision-making within the enterprise. Revising systems and adjusting approval processes typically take several weeks to months, while staff training and system upgrades depend on the scale of the operation. It is recommended to set a timeline at the start and clearly define the responsibilities of each stage to avoid delays that could affect the overall process.

Q4: Do we need to stop operations during the compliance rectification period?

Generally, it is not required to stop operations, but it is necessary to cooperate with the case-handling authorities and ensure that the business after rectification is truly controlled in terms of authority, approval, and supervision. If there are persistent risks in the involved business, it may be more beneficial to suspend the relevant links. Whether to suspend or how to adjust should be comprehensively judged based on the requirements of the case-handling authorities and the lawyer's suggestions.

Q5: Are there any subsequent impacts after the non-prosecution decision?

It depends on the type of non-prosecution. Different types of non-prosecution have different legal consequences, and some types may still involve record-keeping, notification, and follow-up regulatory requirements. In addition, the civil compensation and administrative responsibilities involved in the suspected behavior are not automatically exempted due to non-prosecution. Enterprises should evaluate and handle them separately, and the specific arrangements should be based on the currently effective regulations.

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 currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, so as to avoid missing the statutory time limit. →Criminal defense legal services·Attorney Liu Liqiang·Beijing Henglu 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.