[Direct answer]In the Beijing area, the key to preventing criminal risks in business operations for enterprises is to embed criminal compliance into daily decision-making and business processes. According to the relevant provisions of the Criminal Law of the People's Republic of China and the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018), criminal responsibility can be imposed on the directly responsible persons in charge and other directly responsible persons for unit crimes. Common high-risk areas include taxation, finance, intellectual property, environmental resources, and safety production, with significant differences in the threshold for criminal prosecution and sentencing. It is recommended that enterprises establish mechanisms for compliance review, legal argumentation for major decisions, and internal reporting verification, and promptly involve professional criminal lawyers when clues are found to avoid administrative violations evolving into criminal offenses. For more details, please refer to the following link:Criminal defense and criminal case filing services.

I. Problem background and typical scenarios

In business operations, criminal risks often do not suddenly emerge, but gradually accumulate from daily aspects such as irregular employment practices, accounting processing, advertising campaigns, environmental protection, and safe production. Typical scenarios include: companies issuing invoices to boost performance, shareholders embezzling funds for working capital, sales staff illegally obtaining citizens' personal information to gain customers, factories discharging pollutants exceeding standards and committing environmental crimes, and founders being suspected of contract fraud due to failed bets. Many business owners mistakenly believe that "as long as nothing happens, it's safe," only to realize the problem when their accounts are frozen or employees are arrested. In fact, the terrifying aspect of criminal risks is that both corporate and individual responsibilities are triggered simultaneously, and once a case is filed, the scope for remedial action is far smaller than that of pre-compliance. For matters involving corporate contracts and equity arrangements, the following can be considered:Business and contract dispute services for enterprisesCoordinated evaluation.

II. Key points of contention

Regarding corporate criminal risks, the focus of disputes often centers on three points. First, the boundary between guilt and non-guilt: the same act often only differs in terms of "the seriousness of the circumstances" and "the amount" between administrative violations and criminal offenses, and this needs to be judged in light of judicial interpretations. Second, corporate crime and individual responsibility: whether it is identified as a corporate crime directly determines the scope of accountability and sentencing levels. In practice, the determination of "acting in the name of the unit and for the unit's interests" is particularly crucial. Third, subjective intent and compliance defense: whether the enterprise has established and implemented an effective compliance plan affects the determination of whether the supervisors knew or condoned the illegal activities. When handling corporate-related criminal cases in Beijing, the attention paid to compliance rectification and the reform of corporate compliance has gradually increased. Enterprises should prepare compliance records in advance.

III. Professional analysis by Hengluo Lawyers

Taking a major criminal case handled by Attorney Liu Liqiang of our firm as an example, it can be seen that professional intervention plays a crucial role in the determination of the nature of the crime and sentencing. On June 16, 2024, after an argument with Zhao Gang and others at the mixing station, the defendant, Zhang Daqiang, accelerated his car and crashed into the laboratory, resulting in the instant death of Zhao Gang and injuries to Zhang Bin and Li Yuanzheng. The victim's wife entrusted Attorney Liu Liqiang of Beijing Henglu Law Firm to represent her in the accompanying civil litigation. The core disputes between the two sides were twofold: whether the act of driving a car and causing death should be classified as intentional homicide or endangering public safety by dangerous methods; and whether the defendant, who voluntarily called the police but lied about the brake failure, constituted a voluntary surrender. Through in-depth review of the case file and focusing on the evidence, the lawyer refuted the defendant's arguments about subjective intent, voluntary surrender, the victim's fault, and the determination of the crime, and argued that it should be classified as intentional homicide and given a heavier punishment. After the court's trial, it adopted the lawyer's opinion, determined that Zhang Daqiang's act constituted intentional homicide, sentenced him to death for this crime, and supported the victim's family's request for compensation. This case shows that the argument about subjective intent and the determination of the crime directly affect the sentencing level. 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 on behalf of the client.

IV. Practical suggestions and legal basis

The core legal basis includes Article 30 and Article 31 of the Criminal Law of the People's Republic of China (amended and implemented on March 1, 2021) regarding corporate crimes, as well as provisions on specific crimes such as Article 205 (fraudulent issuance of VAT invoices), Article 271 (embezzlement), Article 266 (fraud), etc. Procedurally, reference can be made to the provisions of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018) regarding case filing, compulsory measures, and the disposition of involved assets. Practical suggestions: Enterprises should set up compliance review nodes in major transactions, financing, employment, and environmental protection; retain decision-making records and approval traces; and, if under investigation, promptly engage lawyers to attend meetings, verify evidence, and assess the boundaries between corporate crimes and individual responsibilities. For special compliance construction, it can be combined with the following aspects:Special services and other case-related servicesAdvance.

5. Henglu Law Firm's Reminder

The key to preventing corporate criminal risks lies in "prevention" rather than "remediation". Once relevant personnel are subject to coercive measures, the enterprise will not only face operational disruptions, but may also fall into a chain of difficulties due to the loss of evidence and account freezes. It is recommended that management regard compliance as a fundamental part of business operations: regular legal checkups, training for key positions, whistleblowing and investigation mechanisms, and seeking professional criminal lawyers' assistance as soon as possible upon receiving an investigation notice to avoid expanding liabilities due to improper responses. Never believe in the misleading notion that "connections can smooth things over"; responding in accordance with the law is the only way to minimize losses.

VI. Frequently Asked Questions

Q1: If a company is suspected of criminal risks, is there a high chance of avoiding criminal charges or reducing its legal liability?

There is no standard answer. The key lies in the nature of the behavior, the amount involved, and whether there are regulatory compliance records. If the act merely constitutes an administrative violation, does not meet the standards for criminal prosecution, or if the company can prove that it has established and implemented an effective compliance program and that the relevant personnel acted on their own initiative, there is a higher chance of avoiding criminal charges or separating the responsibilities of the company from those of the individuals involved. However, if the act meets the criminal threshold set out in the specific provisions of the Criminal Law and the evidence is sufficient, the focus should shift to sentencing defense, the disposition of the involved assets, and lenient treatment for compliance rectification. The value of a lawyer lies in clarifying the legal nature of the case and securing favorable evidence as early as possible, rather than guaranteeing a specific outcome.

Q2: What materials do enterprises need to prepare to prevent and respond to criminal risks?

It is recommended that the system retain the following documents: company bylaws, resolutions of shareholders' meetings and boards of directors, and other decision-making documents; contracts, accounting vouchers, invoices, and bank statements; employment, social insurance, and safety management records; environmental protection, tax declaration, and compliance review reports; internal reporting and investigation handling records. These materials can not only prove the enterprise's standardized operation, but also clarify the boundaries between the unit's actions and individuals' actions when being investigated. The more complete the materials are, the more accurate the lawyer's judgment on guilt and non-guilt, and the scope of responsibility will be.

Q3: How much does it usually cost for a company to hire a criminal defense lawyer?

The attorney's fees are negotiated between the law firm and the client. They are usually calculated based on the stages of the case (investigation, review of the indictment, first instance, second instance) or a comprehensive quote based on the subject matter and workload, with the specific details subject to the client contract. There is no nationwide standard pricing. Criminal cases involving enterprises are usually more expensive than ordinary individual cases due to the involvement of multiple entities and individuals, and the large volume of case files. It is recommended to request a detailed fee breakdown, clarifying the stages of representation, whether it includes travel and third-party expenses, and then weighing the investment against the risk level and potential for litigation success.

Q4: How long does it usually take from identifying a criminal risk to completing the handling process?

If the case is in the compliance investigation stage, the risk list and rectification suggestions can be issued within a few weeks; if it has entered the investigation and detention phase, the maximum detention period is generally about two months (which can be extended according to law for complex cases). The review and prosecution period is about one and a half to several months, and the first-instance ordinary procedure is concluded within two months, but not later than three months. Overall, it often takes several months to more than a year from the filing of the case to the effective judgment. Early intervention can reduce uncertainties, while delaying it may lead to missed opportunities for bail pending trial, compliance rectification, and other measures.

Q5: If a company wants to establish a criminal compliance prevention system, what should they do specifically in the first step?

It is recommended to proceed in four steps: First, sort out high-frequency risk areas (finance and taxation, intellectual property, employment, environmental protection, and anti-corruption), and list the key processes and responsible persons; Second, establish a mechanism for compliance review and approval with traceability, and embed legal argumentation into major decisions; Third, conduct training for management and key positions, and set up channels for reporting and internal investigation; Fourth, once an investigation is initiated or relevant personnel are taken away, immediately engage professional criminal lawyers to intervene, cooperate with the law, and protect the normal operation of the enterprise. Maintain written records throughout the process, making compliance a defensible asset that can be proven.

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, to avoid missing the statutory time limit. →Criminal defense legal services·Attorney Liu Liqiang·Beijing Hengluo 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.