[Direct answer]In the Beijing area, the core of preventing and controlling corporate criminal risks is to identify and resolve criminal legal risks in advance. According to Article 30 of the Criminal Law of the People's Republic of China, if a company, enterprise, institution, organ, or group commits acts that endanger society and are defined by law as corporate crimes, it shall bear criminal responsibility. The unit shall be fined and the directly responsible person in charge and other directly responsible persons shall be sentenced to criminal punishment. Enterprises can actively prevent risks by establishing compliance systems, conducting criminal legal risk assessments (it is recommended to do this once a year), standardizing business operations, and setting up internal reporting and emergency response mechanisms. The key to prevention and control lies in identifying high-incidence crimes, improving approval procedures, and promptly addressing potential risks. It is recommended to conduct compliance assessments as soon as possible and refer to relevant materials for reference.Criminal defenseColumn.

1. Problem background and typical scenarios

Corporate criminal risks are common in several high-incidence areas. Situation one: irregular financial management leading to embezzlement, misappropriation of funds, or false invoicing of value-added tax special invoices; Situation two: business activities involving financial crimes such as illegally absorbing public deposits and fraudulent fund-raising; Situation three: commercial bribery and collusive bidding in the bidding and procurement process; Situation four: environmental pollution and major liability accidents in production and operation; Situation five: intellectual property infringement evolving into criminal offenses; Situation six: refusal to pay labor remuneration in labor employment. When handling similar cases in Beijing, the authorities usually first distinguish between corporate crimes and individual acts, and clarify the scope of direct responsible persons. For cases involving commercial contracts and operational compliance, they may refer to relevant provisions simultaneously.Business and contract disputes in enterprisesColumn.

II. Key points of dispute

First, the boundary between guilt and non-guilt. Many business operations fall between civil breaches of contract and criminal offenses, and the judgment must be based on the subjective intent and harmful consequences. Second, the distinction between corporate crimes and individual crimes affects the subject of responsibility and sentencing. Third, whether compliance rectification can be considered a mitigating circumstance. In recent years, compliance reforms in involved enterprises have made it possible to obtain non-prosecution or lenient treatment for effective compliance. Fourth, the identification of the scope of directly responsible personnel. Fifth, risk warning and evidence preservation, and whether to establish traceable internal control processes. Sixth, crisis response, how to cooperate with investigations and reduce the impact after the incident. Specific determinations shall be based on the current effective laws and regulations and judicial rulings. For related special compliance matters, please refer to the relevant documents.Special services and other casesColumn.

III. Professional analysis by Henglue Law Firm

Taking a major criminal case handled by the lawyers of our firm as an example, we can observe the substantial impact of professional criminal defense on the outcome. In June 2024, the defendant drove a car into a laboratory, resulting in one death and two injuries. The families of the victims entrusted the lawyers of our firm to represent them in the criminal incidental civil action. The lawyers comprehensively reviewed the physical evidence, documentary evidence, appraisal opinions, on-site inspections, and audiovisual materials, and refuted the defendant's defense one by one based on the subjective intent, the circumstances of voluntary surrender, and the nature of the crime, arguing that the defendant should be convicted of intentional homicide and given a heavier punishment. The court ultimately adopted the lawyers' opinions and sentenced the defendant to death for intentional homicide. This case shows that in criminal cases, lawyers can significantly influence the sentencing outcome through a thorough review of the case file and accurate legal characterization; this case was handled by Beijing Henglu Law Firm.Liu LiqiangThe lawyer (practice license number: 11101200910454358, subject to the document issued by the judicial administrative organ) acts as an agent. For enterprises, once criminal risks are triggered, the consequences will be serious. Therefore, it is more important to shift the defense line to daily compliance and seek the help of professional lawyers to conduct risk assessments and prepare crisis prevention plans.

IV. Practical suggestions and legal basis

Action suggestions: First, conduct a criminal legal risk check to identify potential risks of high-incidence crimes in various aspects of finance, operations, and employment; Second, establish compliance systems and internal approval and traceability processes. The relevant system construction can be referenced from other similar organizations.Intellectual Property and Legal ConsultantsFirst, we established a risk prevention and control system, including risk prevention and control rules, risk assessment and early warning mechanisms, and a risk prevention and control database. Second, we implemented a risk prevention and control system based on the three-level prevention and control model. Third, we formulated special prevention and control guidelines for key areas (taxation, finance, environmental protection, and intellectual property). Fourth, we established internal reporting and crisis response plans, and hired professional lawyers to intervene as soon as possible after the incident. Fifth, we paid attention to the compliance reform policies for enterprises involved in the case and strived for effective compliance leniency. In terms of legal basis, Article 30 and Article 31 of the Criminal Law of the People's Republic of China stipulate the principles of corporate crime and its punishment; Article 15 of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018) clarifies the leniency system for guilty pleas and confessions, providing a path for enterprises and responsible persons to seek leniency. All of these are currently effective regulations.

5. Henglu Law Firm's Reminder

Risk Alert: Firstly, criminal risks are costly, and once a case is filed, it will have a huge impact on the enterprise and its responsible persons. Prevention is better than remedy. Secondly, compliance cannot be just a formality. It requires an enforceable approval, traceability, and supervision mechanism. Thirdly, the scope of direct responsible persons in corporate crimes is strictly defined, and both executives and handlers may be held accountable. Fourthly, hiring a professional lawyer as soon as possible after the incident occurs is directly related to the professional judgment of the nature of the crime, evidence, and mitigating circumstances. For more situations involving criminal compliance, please refer to the relevant materials.Beijing Henglu Law FirmThe similar case section on the official website. It is recommended that enterprises incorporate criminal compliance into their daily governance and regularly conduct risk assessments to strengthen their defenses with professional expertise.

VI. Frequently Asked Questions

Q1: How can enterprises effectively prevent and control criminal risks?

Effective prevention and control requires a systematic approach: First, regularly conduct criminal legal risk assessments to identify potential hidden risks of high-incidence crimes in various aspects of finance, operations, and employment; Second, establish enforceable compliance systems and internal approval and traceability processes to avoid compliance becoming a mere formality; Third, develop special guidelines for key areas such as taxation, finance, environmental protection, and intellectual property; Fourth, establish internal reporting and crisis response plans. According to Article 30 of the Criminal Law of the People's Republic of China, when a unit commits a crime, both the unit and the directly responsible personnel shall be held accountable. Enterprises should take preemptive measures and strengthen their compliance barriers with the help of professional lawyers.

Q2: What should be prepared for the investigation of corporate criminal risks?

Companies should systematically sort out three types of materials: First, business and financial information, such as accounts, contracts, approval records, invoices, and bank statements, which are used to identify potential risks such as tax evasion and misappropriation of funds; Second, personnel and employment-related materials, including labor contracts, wage payments, and social insurance records, to prevent the risk of refusing to pay labor compensation; Third, system and process documents, such as internal control manuals and records of reporting channels. During the inspection, it is also necessary to check each item against the list of high-incidence crimes. The more complete the materials are, the clearer the risk profile will be. It is recommended to entrust professional lawyers to issue risk assessment reports, which will facilitate the implementation of rectification measures.

Q3: How much does it cost for a company to implement criminal compliance measures?

The cost of establishing a compliance system is determined through negotiation based on the enterprise's scale, industry risks, and complexity, and there is no unified standard. It generally includes the costs of designing compliance systems, conducting risk assessments, providing specialized guidance and training, as well as ongoing legal advisory fees. If the enterprise has been involved in criminal cases and has initiated compliance rectification, there may also be costs for third-party supervision and evaluation. The specific amount should be assessed based on the enterprise's risk level and scope of services. It is recommended to first conduct a preliminary risk assessment and then determine the phased compliance budget to avoid excessive one-time investment.

Q4: How long does it usually take for corporate criminal risk prevention to take effect?

The risk assessment and preliminary report can usually be completed within a few weeks; building and implementing a complete compliance system typically takes several months to half a year, depending on the size of the enterprise and the complexity of its operations. For the system to be effective, continuous training and supervision are needed, and it's difficult to achieve results overnight. If the enterprise is already facing a criminal investigation, crisis response and compliance rectification should proceed in parallel, with the timeline determined by the pace of the investigation. The key is to start as early as possible and implement in stages to avoid waiting until the risk has evolved into a real case before taking remedial measures. It is recommended to continuously promote compliance as a long-term governance project.

Q5: What should a company do if it detects potential criminal risks?

The first step is to immediately freeze or seal relevant accounts, contracts, and approval records to prevent evidence from being lost or tampered with. The second step is for the compliance or legal department to lead a preliminary investigation into the scope of potential risks and the responsible parties. The third step is to hire professional criminal lawyers as soon as possible to make a criminal legal judgment on the nature of the actions, distinguishing between civil breaches of contract and criminal offenses. The fourth step is to promptly rectify, make up for payments, or remedy the problems for those that are indeed potential risks, and improve internal controls to prevent recurrence. For more similar response strategies, please refer to the relevant materials.Beijing Henglu Law FirmThe case section on the official website. It is recommended that enterprises handle the matter with professional expertise to avoid taking actions on their own and thereby increasing the risk.

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 public 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.