[Direct answer]The identification of criminal compliance risks in enterprises should systematically screen high-incidence crimes along three lines: business, funds, and personnel, and then locate potential risks and establish rules and regulations for rectification based on the characteristics of the industry. Common high-incidence crimes include illegal absorption of public deposits, false invoicing, embezzlement of duties, commercial bribery, and illegal occupation of agricultural land. Identification is not a one-time action, but should be integrated into the annual business plan for regular review. The relevant compliance standards in the Beijing area update quickly. It is recommended that professional criminal lawyers evaluate them based on the actual situation of the enterprise. For more details, please refer to the following link:Criminal defense and legal services for criminal case filing.

I. Problem Background and Typical Scenarios

Companies often get involved in criminal cases not overnight, but as a result of risks going unidentified and unrectified for a long time. Typical scenarios include: the sales model essentially being disguised fund-raising but packaged as a membership system; invoices being falsified and funds embezzled in the procurement and reimbursement process; the actual controllers mixing personal and corporate accounts and freely transferring funds; and land acquisition, construction, and soil extraction activities lacking pre-compliance reviews. When risks slide from administrative violations to criminal offenses, both the company and the directly responsible individuals may face double punishment. For more information on relevant rules, please refer to the following link:Criminal defense and legal services for criminal case filing.

II. Key points of contention

The controversy focuses on three points. Firstly, risk characterization: the same act may constitute both an administrative violation and a criminal offense. The dividing line lies in the amount, circumstances, and subjective intent, which require a case-by-case judgment against the provisions of the Criminal Law. Secondly, responsibility delineation: the distinction between corporate crimes and individual crimes, and between direct responsible persons and non-responsible persons, depends on the evidence of decision-making chains and job responsibilities. Thirdly, the connection between administrative and criminal prosecution: when suspected crimes are discovered during administrative investigations, the administrative authorities should transfer the case to the public security authorities. This channel determines whether the risk will escalate into criminal liability. Generally, the enforcement standards for such connections in the Beijing area are quite strict.

III. Professional analysis by Henglue Lawyers

In a case of illegal land occupation investigation handled by Henglue Law Firm, the applicants, Wang *1 and Wang *2, are villagers of Shuguang Village, Qianjin Town, A County, Henan Province, who legally contracted basic farmland in their village. In May 2024, Liu * * * illegally occupied about 20 mu of land in the village for earthwork without approval, involving 0.5 mu, 0.9 mu, and 3 mu of basic farmland contracted by the applicants, resulting in land hardening, removal of the topsoil, and damage to the pepper trees and persimmon trees on the land. This case reveals a type of easily overlooked compliance risk: if land use, construction, and earthwork lack pre-compliance review, it is very easy to slide from administrative violations to criminal risks such as illegal occupation of farmland as stipulated in the Criminal Law of the People's Republic of China. On December 16, 2025, the applicants entrusted Jing Weiyi, a lawyer from Beijing Henglue Law Firm, to act on their behalf and mailed the "Application for Investigation of Illegal Land Occupation" to the A County Natural Resources Bureau via EMS; the bureau received it on December 17, 2025. After investigation, it registered a case against Liu * * * for damaging farmland on April 7, 2026, determining that he violated Articles 37 and 75 of the Land Management Law of the People's Republic of China (amended on August 26, 2019 and implemented on January 1, 2020) and damaged the conditions for farming. Liu * * * was transferred to the public security organ for criminal investigation on suspicion of illegal occupation of farmland, and he has been subject to criminal compulsory measures. This case shows that administrative investigation and criminal accountability can be linked through the coordination of administrative and criminal procedures. It is particularly crucial to identify land use compliance risks in advance and protect rights in accordance with the law in a timely manner. This case was handled by Beijing Henglue Law Firm.I respect and admire you, YiyiThe attorney (practice certificate number: 11101202510973791, subject to the certificate issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis includes the provisions of the Criminal Law of the People's Republic of China (implemented on October 1, 1997) on crimes such as disrupting the socialist market economic order, infringing property rights, and endangering public safety; Article 37 and Article 75 of the Land Administration Law of the People's Republic of China (amended on August 26, 2019 and implemented on January 1, 2020) on protecting cultivated land and prohibiting illegal occupation and destruction of cultivated land; and the provisions on the connection and transfer of criminal justice in the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018). Action list: 1. Draw a comprehensive map of business operations and financial flows, marking the points of contact with high-incidence crimes; 2. Incorporate prohibited behaviors into institutional and approval procedures; 3. Provide tiered training and maintain records; 4. Establish regular reassessment and third-party audits. For more details, please refer to the following document.Criminal defense and legal services for criminal case filing.

5. Henglue Law Firm's Reminder

Identification is just the first step; the key lies in rectification. Many enterprises only implement compliance on paper, while the execution still relies on personal connections and experience, and the risks have not been truly eliminated. It is recommended to embed compliance checkpoints into the mandatory steps of business processes, rather than just submitting materials afterwards. For cases of administrative violations or criminal clues that have already occurred, do not destroy accounts or forge documents. It is advisable to consult professional criminal lawyers as soon as possible to determine lenient paths such as refunds, voluntary explanations, or compliance rectifications. Enterprises in the Beijing area can obtain relevant legal services from the Beijing Lawyers Association.Beijing Henglu Law FirmUnder the assistance of professional lawyers, we establish a feasible compliance system.

VI. Frequently Asked Questions

Q1: Is it necessary to hire a lawyer to identify corporate criminal compliance risks?

It's not mandatory, but involving professional lawyers can be more systematic. Corporate in-house legal or compliance departments can conduct preliminary investigations, but for professional judgments such as the boundaries of criminal charges, the coordination of criminal punishment, and the delineation of responsibilities, criminal lawyers are still needed to provide oversight. Lawyers can identify from a defense perspective which actions might constitute crimes and propose feasible rectification and isolation solutions. Whether to hire external lawyers depends on the scale of risks. For high-frequency cases involving large numbers of people or capital-intensive businesses, it is recommended to entrust professional criminal lawyers to conduct assessments.

Q2: Which crimes are most likely to be committed by enterprises?

High-frequency crimes vary by industry: in the financial and wealth management sector, they often involve crimes such as illegally absorbing public deposits and fraudulent fundraising; in the trade sector, they often involve contract fraud, false invoicing, and tax evasion; in corporate enterprises, they often involve embezzlement of funds, misappropriation of funds, and commercial bribery; and in production and land use, they often involve the production and sale of counterfeit products and the illegal occupation of agricultural land. When identifying these risks, we should combine three aspects: the business model, the capital flow, and the employees' behavior. Then, we should check each of them against the corresponding articles in the Special Provisions of the Criminal Law of the People's Republic of China to identify high-risk areas.

Q3: How much does it cost to hire a lawyer for corporate criminal compliance?

The fees are charged on a per-item basis, determined through consultation based on the enterprise's scale, business lines, and the depth of the investigation. There is no unified government pricing. For projects involving system reconstruction, training, and special due diligence, the fees will increase accordingly. Compared with the post-criminal punishment of imprisonment, fines, double penalties for corporate crimes, and the collapse of corporate reputation, the cost of compliance is significantly lower. Before entrusting the project, it is recommended to clearly specify the deliverables (risk lists, system documents, and training records) and the subsequent rectification service fees to avoid unclear scope and repeated charging.

Q4: How long does it take to build an enterprise criminal compliance system?

It depends on the maturity of the enterprise. For enterprises with existing internal controls, risk profiling and strengthening can be implemented in one to two months; for those building from scratch, it will take three to six months, including risk identification, system revision, process integration, training, and walk-through testing. Enterprises facing stricter supervision or planning to raise funds or go public should start the process six months in advance. Relevant compliance requirements and judicial interpretations in the Beijing area update rapidly, so it is recommended to leave sufficient buffer time and embed compliance milestones into the annual business plan.

Q5: How to rectify and implement the identified criminal risks?

Four steps to advance: First, sort by risk level and deal with the business with the greatest exposure to criminal risks first; Second, revise the system and process, and incorporate prohibited behaviors into job responsibilities and approval nodes; Third, carry out layered training and keep records, and key positions sign compliance commitments; Fourth, establish reporting, self-inspection, and third-party audit mechanisms, and regularly reassess. For administrative or criminal clues that have already occurred, consult lawyers simultaneously to determine the lenient path of surrendering oneself to the authorities, making restitution, or actively explaining the situation.

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

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the evidence materials, so as to avoid missing the statutory time limit. →Criminal defense legal services·Attorney Shang Jiangpeng·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.