[Direct answer]In the Beijing area, corporate criminal compliance refers to the establishment of a system and process for identifying, assessing, and preventing crime risks in business operations, typically including anti-bribery, anti-money laundering, trade secrets, safe production, tax, and financial compliance modules. According to the provisions of the Criminal Law of the People's Republic of China on corporate crimes and the relevant procedures of the Criminal Procedure Law of the People's Republic of China, enterprises and responsible individuals may be held criminally liable for poor management practices. It is recommended that enterprises, based on industry-specific risks, establish compliance manuals, whistleblowing mechanisms, and third-party due diligence, and, when necessary, engage professional lawyers to conduct compliance audits and rectifications. For more details, please refer to the following link:Criminal defense and criminal case filing services.

I. Problem Background and Typical Scenarios

As the reform of corporate compliance progresses, more and more enterprises are proactively incorporating criminal compliance into their governance. Typical scenarios include: executives facing the risk of commercial bribery to secure orders; finance departments violating tax laws by issuing false invoices and evading taxes; production safety management failures leading to major accidents; and units being investigated due to employees' personal misconduct. Many enterprises mistakenly believe that compliance is just about "writing rules", only realizing the value of pre-emptive prevention when a case occurs. The essence of criminal compliance is to embed legal risks into business processes, ensuring that they are identifiable, can trigger early warnings, and can be held accountable. For matters involving corporate contracts and governance, it can be combined with other measures to achieve better results.Business and contract dispute services for enterprisesCollaboratively build it together.

II. Key points of contention

The disputes and misunderstandings regarding corporate criminal compliance focus on three aspects. Firstly, the scope of compliance: Different industries have different risk points, and financial, pharmaceutical, construction, and internet industries each have their own emphases, so templates cannot be applied universally. Secondly, the identification of corporate crimes: Whether the act reflects the corporate will and whether the benefits belong to the corporate entity determine the subject of responsibility, and it is necessary to clarify the boundaries between individual actions and corporate actions. Thirdly, the effectiveness of compliance rectification: Whether post-compliance measures can lead to lenient punishment depends on whether the system is truly operational and capable of preventing recurrence, rather than just a superficial compliance effort. For issues involving intellectual property and data compliance, relevant corporate legal services can be referenced to embed compliance requirements into daily operations.

III. Professional analysis by Hengluo Lawyers

The criminal cases handled by our firm demonstrate the crucial role of professional criminal defense in protecting the rights and interests of clients, and also highlight the importance for both enterprises and individuals to pay attention to the prevention and control of criminal risks in advance. Taking a criminal case of intentional homicide with accompanying civil litigation as an example: On June 16, 2024, the defendant, Zhang Daqiang, accelerated his car and rammed into a laboratory, causing the death of Zhao Gang on the spot 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 litigation. The focus of the dispute was whether the act of driving into people should be classified as intentional homicide or endangering public safety by dangerous means, and whether the defendant's lies about brake failure and repeated recantations after calling the police could be recognized as voluntary surrender. The procuratorial organ brought charges of intentional homicide, and Attorney Liu Liqiang comprehensively reviewed the case file, refuting the defendant's claims on subjective intent, voluntary surrender, victims' fault, and the nature of the crime one by one. The court ultimately adopted the lawyer's opinion and sentenced Zhang Daqiang to death for intentional homicide. 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 the agent. This example shows that once major criminal risks occur, professional and timely defense intervention directly affects the outcome of the case, highlighting the value of pre-emptive compliance prevention and control.

IV. Practical suggestions and legal basis

The legal basis is the provisions of the Criminal Law of the People's Republic of China (amended on December 26, 2020) concerning corporate crimes, commercial bribery, tax-related crimes, etc., as well as the relevant procedures of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018); the judicial policies related to the compliance reform of the enterprises involved are also important references. Practical suggestions: sort out the criminal risk list by industry, establish a compliance manual and a reporting and investigation mechanism; provide compliance training for executives and key positions; introduce third-party due diligence to prevent risks from business partners; conduct a compliance check before the incident occurs, and explore compliance rectification to seek leniency after the incident. For matters involving corporate governance and contracts, they can be combined with other relevant legal provisions to ensure legal compliance.Business and contract dispute resolution services for enterprisesIntegrated advancement.

5. Henglu Law Firm's Reminder

The key to corporate criminal compliance lies in "prevention" rather than "remediation". It is recommended to incorporate compliance requirements into business processes and performance evaluations to ensure risks can be identified and responsibilities can be traced. Special controls should be set up for high-frequency risk points (bribery, taxation, work safety, and data). Once a company or employee is involved in criminal cases, it is essential to engage professional criminal lawyers as soon as possible to seize the golden intervention period during the investigation stage and protect the legitimate rights and interests of the company and responsible personnel in accordance with the law. When selecting lawyers, verify their professional qualifications and similar case experience, and reject unrealistic promises. Compliance construction is an ongoing project. It is advisable to regularly update it in accordance with industry regulatory developments and, when necessary, enlist the help of external legal teams to conduct independent assessments and rectifications.

VI. Frequently Asked Questions

Q1: Can enterprises really avoid criminal liability by implementing criminal compliance measures?

Criminal compliance can significantly reduce criminal risks, but it cannot absolutely "avoid" criminal liability. The value of compliance lies in pre-identification and prevention: through system construction, process control, and training, it can reduce the probability of units and employees being involved in criminal cases; conducting compliance check before the case occurs can correct deviations in advance. More importantly, according to the compliance reform policies of the enterprises involved in the case, if the suspected criminal enterprises establish or improve the compliance system and pass the evaluation during the review and prosecution stage, they may strive for non-prosecution or lenient treatment. However, this is based on the premise that the compliance is real and effective and can prevent recurrence, rather than just a formality. Therefore, compliance is an important means of risk reduction and seeking lenient treatment, and the result depends on whether the system is truly operational. It is recommended to build it pragmatically based on the industry risk list, rather than pursuing formality.

Q2: When a company wants to implement criminal compliance, what aspects should it focus on to organize and review its systems and procedures?

It is recommended to sort out the risks from four perspectives: First, the industry risk list, identifying high-incidence crimes and regulatory focuses in the relevant fields (such as finance, pharmaceuticals, construction, and the Internet); Second, the business process, screening potential crime-prone nodes in procurement, sales, finance, and personnel management; Third, the system and authorization, checking whether the approval, reporting, and investigation mechanisms are sound and whether the boundaries between the unit's and individual's actions can be clarified; Fourth, third parties and employees, establishing due diligence and training records. The sorting results should form a risk map and a rectification list, and be accompanied by a compliance manual and assessment. For issues involving intellectual property and data use, the compliance requirements can be refined and integrated into daily operations.

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

Corporate criminal compliance fees are usually negotiated on a project-by-project basis or by service period, with the amount depending on the company's size, the complexity of industry risks, and the depth of compliance (due diligence, system construction, or rectification guidance). The fees are agreed upon in a contract between the law firm and the client, and there is no standard price. According to relevant regulations, risk-based fees are prohibited for criminal litigation. It is recommended to require the law firm to provide a proposal and fee breakdown before entrusting them, clarifying the service content, phase results, and whether it includes third-party costs such as training and due diligence. Be vigilant against quotes that are obviously too low or promise "guaranteed non-prosecution". Rationally evaluate the investment and focus on whether the compliance system can be truly implemented and risks can be prevented, rather than simply comparing prices.

Q4: How long does it usually take to establish an enterprise's criminal compliance system?

The cycle depends on the goals and the foundation. A compliance check and risk list review can usually be completed in a few weeks; establishing a complete compliance manual, process, and training system often takes several months to half a year; if it involves the rectification of the involved enterprise and seeking a compliance inspection, it will need to cooperate with the inspection period determined by the judicial authorities, which may be more than half a year. Compliance is not a one-time project. After the system goes online, regular audits and updates are still needed. It is recommended that enterprises proceed in stages: first conduct a check to eliminate hidden risks, then establish a system, and finally focus on implementation and review. For areas involving major risks, they can seek assistance from relevant institutions or experts.Special services and other case servicesObtain an external independent evaluation to enhance the credibility of the system.

Q5: Our company wants to implement criminal compliance. What should we do specifically in the first step?

It is recommended to follow a four-step approach: First, clarify the scope, led by the legal department or external lawyers, and identify high-risk criminal issues in the industry based on regulatory requirements. Second, conduct a status review by retrieving existing systems, processes, and penalty records from the past three years to identify control gaps. Third, establish a compliance system by developing a compliance manual, establishing reporting and investigation mechanisms, and integrating these requirements into key business processes and performance evaluations. Fourth, provide training and review sessions. Train executives and key positions and keep records of the training sessions. Conduct regular audits and updates. If criminal risks have already emerged, it is essential to engage professional criminal lawyers as soon as possible to distinguish individual and corporate responsibilities and seize the critical response period. When necessary, collaborate with corporate commercial and contract dispute channels to address issues holistically.

The above content is based on the compilation of judicial practices 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 about specific situations.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence, to avoid missing the statutory time limits. →Criminal defense legal services·Attorney Liu Liqiang·Beijing Hengluo Law Firm

Disclaimer: This article is compiled based on 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.