[Direct answer]In the Beijing area, corporate criminal compliance refers to a management system through which enterprises prevent criminal legal risks for their units and employees through systems, processes, and training. Common issues focus on how to establish a compliance system, the boundaries between corporate crimes and individual crimes, and how to respond after being involved in a case. According to the provisions of the Criminal Law of the People's Republic of China on corporate crimes and relevant policies on compliance reform for enterprises involved in cases, establishing an effective compliance plan can to some extent influence the determination of responsibilities and sentencing evaluations. It is recommended that enterprises conduct compliance checkups as soon as possible to identify risk points in areas such as financing, taxation, and intellectual property. If involved in a case, they should consult criminal defense lawyers simultaneously. For more details, please refer to the following link:Criminal defense and criminal case filing services.

1. Problem background and typical scenarios

With increasingly stringent supervision, more and more enterprises are paying attention to criminal compliance. Typical scenarios include: start-up companies with irregular financial and taxation practices, worried about the risks of false invoicing and tax evasion; platform-type enterprises lacking control over merchants' operations, involved in illegal operations or assisting in information network crime activities; employees embezzling or misappropriating funds to harm the company's interests; and enterprises hoping to obtain lenient treatment through compliance rectification after being involved in cases. Compliance is no longer the "patent of large companies". Small and medium-sized enterprises also face criminal liability risks in financing, employment, data, and other aspects. For matters involving the daily legal affairs of enterprises, they can combine withIntellectual property protection and corporate legal services.

II. Key points of contention

There are three controversial issues in corporate criminal compliance. Firstly, the boundary of corporate crime: which actions are attributable to the company and which are individual actions, which directly relates to the subject of responsibility and the scope of compensation. Secondly, the effectiveness of compliance: whether the compliance plan is truly implemented and whether it can be used as a basis for leniency is the core of reform practice. Thirdly, the response to the case: after the case occurs, whether the company conducts self-rectification or relies on third-party supervision and evaluation, the choice of path affects the outcome. In practice, compliance should be preventive rather than remedial after the case occurs. For contract-related risks, you can refer to it for reference.Business and contract dispute services for enterprises.

III. Professional analysis by Hengluo Law Firm

Once relevant personnel in an enterprise are involved in a criminal case, professional criminal defense becomes the key to protecting their rights and interests. The following case, handled by our firm, illustrates the role of lawyers in such situations. On June 16, 2024, the defendant, Zhang Daqiang, drove a car into a laboratory, causing the death of Zhao Gang and injuries to Zhang Bin and Li Yuanzheng. The victims' families entrusted Attorney Liu Liqiang of Beijing Henglu Law Firm to represent them in the accompanying civil action. The lawyer focused on the key issue of whether the crime should be classified as "intentional homicide" or "endangering public safety by dangerous methods", conducted in-depth review of the case materials, refuted the defense arguments, and ultimately the court sentenced Zhang Daqiang to death for intentional homicide and supported the compensation request. This case demonstrates the value of distinguishing the nature of the crime and overcoming evidentiary challenges in criminal defense. When an enterprise is involved in a criminal case, it is equally important for lawyers to clarify the nature of the act as soon as possible, distinguish between the responsibilities of the unit and individuals, and strive for leniency. This case was handled by Beijing Henglu Law Firm.Liu LiqiangAttorney (Practice Certificate No.: 11101200910454358, subject to the certificate issued by the judicial administrative organ) acting as an agent.

IV. Practical suggestions and legal basis

The core basis is Article 30 and Article 31 of the Criminal Law of the People's Republic of China (conviction and punishment of corporate crimes), as well as judicial policy documents on compliance reforms for enterprises involved in cases. Practical suggestions include: conducting compliance audits to identify risks in financial and taxation, financing, data, and employment processes; establishing anti-fraud, anti-money laundering, and contract approval procedures; providing criminal risk training for employees; and, once involved in cases, distinguishing between corporate and individual responsibilities, securing favorable evidence, and cooperating with compliance rectification. For enterprise dispute resolution, relevant advice can be provided in conjunction with the above-mentioned measures.Creditor-debtor relations and enforcement case servicesCoordinate and plan things in an organized and systematic way to achieve a specific goal or complete a task efficiently and effectively.

5. Henglu Law Firm's Reminder

The key to corporate criminal compliance lies in "proactive prevention and hierarchical control". It is recommended to embed compliance into business processes rather than remedying it afterwards, and to conduct regular audits and implement traceability management. Once relevant personnel are prosecuted, they should engage criminal defense lawyers as soon as possible to clarify the nature of the crime and distinguish responsibilities. We should remain vigilant against phrases such as "smoothing over relationships" and "guaranteeing victory", and the right path is to rectify and defend in accordance with the law. For those in need of building a compliance system, they may refer to the following for reference:Special services and other case services.

VI. Frequently Asked Questions

Q1: Can criminal compliance really help companies reduce the risk of criminal liability?

Effective compliance can substantially reduce risks but cannot "exonerate guilt". Preventive compliance can identify and block illegal clues, reducing the occurrence of corporate crimes; after being involved in a case, a genuine and effective compliance plan can be considered as a mitigating factor, allowing the involved enterprise to strive for non-arrest, non-prosecution, or lenient sentencing in accordance with the compliance reform policies of the involved enterprise. However, compliance is not an "umbrella". If it is merely implemented to meet inspection requirements without real effectiveness, it will be hard to gain credibility. The outcome depends on the authenticity of the compliance and the facts of the case, and lawyers cannot promise exemption from liability.

Q2: What materials are required for the construction of an enterprise's criminal compliance system?

Suggested preparations: corporate organizational structure and business flow diagrams, used to identify risk areas; financial and tax records, contracts, and fund flows for the past three years, to investigate clues of false invoicing, tax evasion, and misappropriation of funds; existing rules and regulations and approval records, to evaluate the traceability of implementation; employee job authorizations and training files; and past penalty or dispute materials. Lawyers will conduct a compliance check based on these materials, identify the boundaries of corporate and individual responsibilities, and provide a risk list and rectification plan.

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

The legal fees for corporate criminal compliance services are negotiated between the law firm and the client. They are typically charged on a project basis (compliance check, system construction, special rectification), and the specific fees shall be subject to the contract terms, with no nationwide standard pricing. Such non-litigation services are generally not subject to contingency fees. It is recommended to clarify the scope of services, deliverables, and fee milestones before entrusting the service. For long-term compliance consultants, an annual framework agreement can be negotiated to avoid subsequent price increases due to unclear scopes of services.

Q4: How long does it take for an enterprise to complete criminal compliance from the start of compliance to the completion of rectification?

The duration depends on the scope and depth: compliance inspections often take several weeks, system construction and implementation take about one to three months, and compliance rectification involving legal proceedings may last for several months or even longer. In practice, the compliance review period is determined by the investigating authorities, typically ranging from a few months to a year. Overall, continuous efforts are needed from initiation to effective operation. It is recommended to treat compliance as a long-term mechanism rather than a one-time project.

Q5: If a company wants to implement criminal compliance, what should be the first step to take?

There are four steps recommended: First, sort out the business and organizational structure and list the high-risk links (finance and taxation, financing, data, and employment); Second, select a team of lawyers who are proficient in criminal compliance to conduct a compliance check and issue a risk list; Third, establish or improve the system and processes, with a focus on approval, record keeping, and training; Fourth, simultaneously entrust criminal defense lawyers when involved in cases, distinguish between the responsibilities of the unit and individuals, cooperate with rectification to strive for leniency. Keep the implementation records throughout the process for verification.

The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.

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 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.