[Direct answer]The two are highly correlated but focus on different aspects. Criminal permanent legal advisors provide annual services to enterprises, offering regular support in areas such as daily criminal risk consultation, review of business operations involving criminal risks, and emergency response to employee-related criminal risks. Criminal compliance advisors, on the other hand, focus more on the establishment of specialized systems. They design compliance plans, conduct system inspections, and provide employee training in risk areas such as commercial bribery, false invoicing, infringement of trade secrets, and data security. According to Articles 30 and 31 of the Criminal Law of the People's Republic of China (implemented on October 1, 1997 and amended several times), units that commit crimes shall be fined and the directly responsible persons shall be held accountable. The level of compliance directly affects the exposure of risks and the determination of responsibilities. Enterprises should first conduct risk assessments and then decide whether to choose permanent advisors or specialized compliance advisors. For reference, please refer to the following document:Intellectual property and corporate lawColumn.

I. Problem Background and Typical Scenarios

This type of consultation is common in several situations: First, when executives or employees of an enterprise are subject to coercive measures by public security organs, management is eager to understand how to respond to the situation; Second, when the enterprise engages in businesses related to taxation, invoices, and bidding and tendering, it is concerned about whether its business activities may cross the red line of criminal law; Third, when it plans to cooperate with listed companies or state-owned enterprises, it is required to provide compliance certificates; Fourth, when preparing for a listing or expanding overseas operations, it needs to establish internal control systems such as anti-commercial bribery; Fifth, when industry supervision is becoming stricter, management hopes to obtain regular support in criminal risk prevention. When enterprises in the Beijing area handle similar matters, they usually first obtain a risk investigation opinion from a lawyer, then determine the service model, and refer to the criminal response for referenceCriminal defenseColumn.

II. Key points of contention

Focus One: Service Objects and Scope. Full-time consultants provide daily support to enterprises as a whole, while compliance consultants offer system solutions for specific risk areas. Focus Two: Liability Structure. Corporate crimes and individual crimes are prosecuted concurrently, and both directly responsible supervisors and other directly responsible personnel may be held criminally liable. Focus Three: The Practical Value of Compliance Remediation. Enterprises involved in cases can benefit from effective compliance remediation, which may be considered as an important factor for lenient legal treatment. Focus Four: The Application Scope and Procedural Choices of the Guilty Plea and Punishment Reduction System. Focus Five: The Emergency Boundaries of Consulting Services. Lawyers are prohibited from providing any advice on destroying evidence, colluding with witnesses, etc. Specifically, the applicable laws, regulations, and judicial rulings shall prevail. For matters related to corporate internal governance, reference may be made to relevant guidelines or standards.Business and contract disputes in enterprisesColumn.

III. Professional analysis by Henglue Lawyers

Based on the practical experience of lawyers from our firm, corporate criminal risks are concentrated in several high-incidence areas: First, commercial bribery in business transactions, involving bribing non-state employees (Article 164 of the Criminal Law of the People's Republic of China); Second, falsely issuing VAT invoices (Article 205), commonly seen in purchasing tickets for tax deduction and circular invoicing; Third, infringement of trade secrets and embezzlement of company funds, often triggered by departing employees or internal personnel; Fourth, the associated risks of improper handling of data and personal information. The regular practice of consulting lawyers is to sort out the crime-related nodes in business processes, revise contracts, reimbursement and bidding systems; carry out employee training and keep records; establish emergency response plans for criminal cases, and clarify the legal response and reporting path when employees are interrogated, searched, or subject to coercive measures. The compliance system usually serves as a firewall, and when involved in cases, it becomes the factual basis for seeking lenient treatment.

IV. Practical suggestions and legal basis

Action suggestions: First, review the criminal law risk list against the business model, with priority given to covering funds, invoices, and bidding and tendering processes; Second, establish a pre-review mechanism for criminal compliance of major transactions; Third, immediately engage lawyers when criminal incidents occur to avoid expanding risks through self-handling; Fourth, actively cooperate with investigations, return illegal gains, and promote compliance rectification after being involved in a case, seeking leniency in accordance with the law; Fifth, retain compliance systems and training records as evidence of effective compliance. Regarding legal basis, Article 30 and Article 31 of the Criminal Law of the People's Republic of China (implemented on October 1, 1997 and amended several times thereafter) stipulate the punishment principles for corporate crimes; Article 15 of the Criminal Procedure Law of the People's Republic of China (amended and implemented on October 26, 2018) establishes the leniency system for guilty pleas and confessions. For specific texts and plans, please refer to the relevant materials for reference.Special services and other casesColumn.

5. Henglue Law Firm's Reminder

Risk Alert: Firstly, the consequences of criminal risks are irreversible, and the cost of preventing them in advance is far lower than that of remedying them afterwards; Secondly, compliance is not just a piece of paper, the key lies in implementation and record keeping; Thirdly, employees' personal crimes may implicate the company, so it is essential to conduct background checks on new employees and implement authorization management; Fourthly, after being involved in a case, do not conceal evidence or privately contact the investigators. It is recommended that enterprises tailor criminal compliance programs according to their industry characteristics and seek professional advice when necessary.Beijing Henglu Law FirmOn the official website, similar columns are evaluated by professional lawyers to determine the risk level.

VI. Frequently Asked Questions

Q1: Can a company still conduct compliance rectification after being criminally investigated?

It depends on the stage of the case and the specific circumstances of the case. Since the pilot program for compliance reform of enterprises involved in the case was launched, eligible enterprises can carry out compliance rectification under the guidance of the case-handling authorities. After the rectification is evaluated and accepted, it can be considered as a factor for lenient treatment according to law. The rectification must involve real efforts, the implementation of systems, and acceptance of supervision and inspections. Superficial compliance is unlikely to be recognized. It is recommended to entrust a lawyer to communicate with the case-handling authorities about the procedures and conditions as soon as possible.

Q2: What does a criminal legal advisory service typically include?

It usually includes: daily risk consultation related to criminal law, criminal review of business activities and major contracts, emergency guidance and lawyer meetings when employees are involved in criminal cases, compliance guidelines for cooperating with investigations, and annual criminal risk investigation reports. The construction of special compliance systems and defense in criminal cases are often entrusted separately as special projects, subject to the specific provisions of the service contract. The response time and emergency mechanisms should be clearly specified at the time of signing the contract.

Q3: How much does it cost to establish a criminal compliance system?

The cost is related to the size of the enterprise, industry risks, and the scope of coverage: the cost of a special inspection in a single field (such as anti-commercial bribery) is relatively low; the cost of building a system covering multiple fields such as taxation, data, and bidding involves drafting regulations, training, and acceptance, which requires correspondingly higher investment. Compared with the fines and losses from business interruption faced by corporate crimes, the upfront investment is usually more economical. It is recommended to conduct a risk assessment first and then set a budget.

Q4: How long does it usually take to establish a criminal compliance system?

It usually takes several weeks to complete the design of systems and processes in a single risk area; multi-area systems involve interviews, system implementation, training, and testing, often requiring more than two or three months; the timeframe for compliance rectification involving cases is determined by the case-handling authorities. After the system is set up, regular reviews and updates are needed. Compliance is an ongoing process rather than a one-time project, and it is recommended to incorporate it into the annual advisory services for continuous progress.

Q5: What should the company do if an employee is subject to coercive measures?

The first step is to confirm the type of coercive measures and the case-handling authority, and retain the legal documents. The second step is to appoint a lawyer as soon as possible to meet with the suspect and understand the suspected charges and basic circumstances. The third step is to cooperate with the investigation according to the guidelines, and the submitted materials must be reviewed by the lawyer. Do not conceal or destroy evidence or collude with others in giving false testimony. The fourth step is to assess whether the case involves corporate crime and simultaneously initiate an internal self-inspection. The fifth step is to refer to relevant provisions for further action.Criminal defenseThe column explains the key points of the program.

The above answer is based on the judicial practice in Beijing. The adjudication standards in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence, to avoid missing the statutory time limit. →Intellectual property protection legal services·Beijing Henglu 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. If you encounter disputes, please consult a practicing lawyer in time.