[Direct answer]In the Beijing area, criminal compliance penalties refer to the criminal responsibilities and subsequent consequences that enterprises or individuals bear for violating criminal laws. These include property penalties such as fines and confiscation of property, as well as freedom penalties for the directly responsible persons of the units, and additional measures such as compliance rectification and prohibition from engaging in the profession. When a company is involved in criminal cases, lawyers can assist in: establishing a pre-event compliance system and conducting risk assessments; intervening in investigations and providing defense during the process; and promoting compliance-based non-prosecution or mitigated punishments after the event. According to the Criminal Law and relevant regulations on compliance reform for enterprises involved in criminal cases, effective compliance can serve as a mitigating circumstance. Whether the punishment can be mitigated depends on whether the compliance is genuine and effective, and whether the violations are actively rectified. It is recommended to introduce professional criminal compliance lawyers as soon as possible. For more details, please refer to the following link:Criminal defense and criminal case filing services.

I. Problem Background and Typical Scenarios

In recent years, criminal compliance has become increasingly important in corporate-related crimes. Typical scenarios include cases such as bribery by units, false invoicing of value-added tax special invoices, environmental pollution, infringement of intellectual property rights, and illegal fundraising, where enterprises face not only fines but also accountability for their responsible persons. In addition, regulatory-driven compliance reforms for enterprises involved in cases allow those who voluntarily establish effective compliance systems to seek non-prosecution or lenient treatment. Many enterprises mistakenly believe that compliance is just a formality, only implemented after problems arise, but in reality, a proactive compliance system is the key to risk isolation. For financial and tax risks, it can be combined with other measures to address these issues.Creditor-debtor relations and enforcement case servicesOutput: Sort out the funding chain.

II. Key points of contention

There are three focal points in criminal compliance disputes. Firstly, the determination of corporate crime: whether the act reflects the corporate will and whether the benefits belong to the corporate, which decides whether to punish the corporate or individuals. Secondly, the effectiveness of compliance: whether the compliance system established after the fact can be recognized as "effective" depends on whether it is truly implemented, whether there is rectification and supervision, and formalized compliance is difficult to gain recognition. Thirdly, the scope of leniency: how can factors such as compliance rectification, repayment of illegal income, and compensation and reconciliation be reflected in sentencing? The court and the procuratorial organ will comprehensively consider the seriousness of the violation, the authenticity of compliance, and the risk of recidivism. For contract-related risks, reference can be made to the relevant provisions.Business and contract dispute resolution services for enterprisesDefine the boundaries of responsibility.

III. Professional analysis by Hengluo Lawyers

The quality of handling criminal cases largely reflects the accurate control of evidence and legal qualification, which is particularly evident in the criminal and civil litigation case of intentional homicide handled by Hengluo Law Firm. On June 16, 2024, the defendant, Zhang Daqiang, drove a car into a laboratory, causing the death of Zhao Gang on the spot and injuring two others. The victim's family entrusted attorney Liu Liqiang of Beijing Hengluo Law Firm to represent them in the civil litigation. Through in-depth review of the case file, the attorney refuted the defendant's defense arguments one by one regarding subjective intent, voluntary surrender, the victim's fault, and the legal qualification of the crime, arguing that it should be classified as intentional homicide and subject to severe punishment. The core controversy was whether driving into people should be classified as intentional homicide or endangering public safety by dangerous means, and whether the voluntary surrender was established. The court ultimately adopted the attorney's opinion, sentencing Zhang Daqiang to death for intentional homicide, and supported the civil litigation's claims for compensation for various losses such as death compensation and funeral expenses. This case was handled by Beijing Hengluo Law Firm.Liu LiqiangThe attorney (practice license number: 11101200910454358, subject to the document issued by the judicial administrative organ) acts as the agent.

IV. Practical suggestions and legal basis

The legal basis is Article 31 (Principles of Punishment for Corporate Crimes) and Article 232 (Crime of Intentional Homicide) of the Criminal Law of the People's Republic of China (amended on December 26, 2020 and implemented on March 1, 2021), as well as the relevant provisions of the Criminal Procedure Law of the People's Republic of China (amended and implemented on October 26, 2018); the compliance of the involved enterprises can refer to the compliance reform policies for involved enterprises promoted by the Supreme People's Procuratorate and other authorities. Practical suggestions: Enterprises should establish special compliance systems for anti-bribery, taxation, data, etc. in advance and keep records; entrust lawyers to intervene as soon as possible after being involved in the case, cooperate with the investigation and promote effective compliance rectification; voluntarily surrender the illegal income and compensate for damages to seek leniency; and make a clear distinction between the responsibilities of the enterprise and individuals and provide evidence for it. For the establishment of a compliance system, it can be combined with the following aspects:Special services and other case servicesAdvance.

5. Henglu Law Firm's Advice

Criminal compliance is not a panacea for remedying problems after the fact; the fundamental solution lies in building a systematic compliance framework in advance. The top priority for enterprises is to embed compliance into their business processes and maintain execution records, rather than retroactively submitting documents after incidents occur. Upon being involved in legal cases, they should immediately engage professional criminal lawyers to clarify the responsibilities of the company and individuals, and promote genuine and effective compliance rectifications. Never trust connections or promises of guaranteed success—criminal liability is determined by facts and laws. For major risks involving taxation, environmental protection, and intellectual property, it is recommended to conduct regular compliance checkups to eliminate the risk of penalties before cases are filed.

VI. Frequently Asked Questions

Q1: If a company has implemented criminal compliance measures, does that mean it will definitely not be sentenced to prison?

No. Effective compliance can reduce risks and secure leniency, but it cannot exempt one from criminal liability for acts that already constitute crimes. Whether leniency will be granted, and the extent of such leniency, depend on the nature and consequences of the illegal acts, the authenticity and effectiveness of the compliance system, whether the company actively corrected and refunded the money, and whether there is a compensation agreement, among other factors. Formalistic, reactive compliance is unlikely to gain recognition. What lawyers can do is help enterprises establish truly practical compliance systems, and present compliance rectifications as a basis for leniency when involved in cases, rather than promising that there will definitely be no punishment. Only by rationally understanding the boundaries of the role of compliance can we make the right decisions.

Q2: If a company is suspected of committing a criminal offense, what materials do lawyers need to prepare for their defense?

The core materials include: the company's business license and organizational structure (defining the unit's will and responsible entities), the contracts and financial accounts involved in the case (proving the flow of funds and the ownership of benefits), internal compliance systems and implementation records (proving that the management obligations have been fulfilled), relevant approvals and meeting resolutions (distinguishing between the unit's and individual actions), as well as regulatory inspections, rectification notices, and correspondence. The goal of organizing the evidence is to clarify whether the actions reflect the unit's will, whether the benefits belong to the unit, and whether the compliance is genuine and effective. The more complete the materials are, the more solid the arguments for identifying the unit's criminal responsibility and applying lenient compliance measures will be, thus avoiding the improper transfer of the unit's responsibility to individuals.

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

The fees charged for criminal compliance services vary greatly depending on the stage of the case: pre-compliance system construction is usually charged on a project or hourly basis, while defense in criminal cases is charged based on the stage or the amount of the case. The specific fees are subject to the contract of engagement and there is no unified standard. According to relevant regulations, risk-based fees are prohibited in criminal litigation, and fees based on the outcome of the case are not allowed. It is necessary to be vigilant against illegal promises. Enterprises involved in the case should clarify the scope of services (compliance check, rectification plan, defense agency) and the cost cap before entrusting the service, and comprehensively evaluate the costs based on the possible fines, confiscations, and civil compensation. It is essential to avoid getting into secondary disputes due to unclear fees, and not to sacrifice critical compliance and defense just to save money.

Q4: How long does it typically take to complete criminal compliance rectification, and how long does it take from being involved in the case to obtaining the results?

The timeframe depends on the procedures and the specific circumstances of the case. For enterprises involved in compliance reforms, a several-month compliance review period is typically set, during which the enterprise must complete rectification and undergo evaluations under regulatory or third-party supervision. Subsequently, the procuratorial organ decides whether to issue a non-prosecution recommendation or a lenient sentencing proposal based on the effectiveness of the rectification. If the case proceeds to trial, the hearing period will add several months to the overall process. Overall, it often takes more than half a year from the initial involvement in the case to the final conclusion, and complex cases may take even longer. It is recommended that enterprises initiate compliance rectification as soon as possible after being involved in the case, and use the review period and the quality of the rectification as key factors for leniency, to avoid delays that could lead to worsening circumstances.

Q5: If a company identifies criminal risks, what should it do first?

It is recommended to proceed in four steps: First, immediately freeze and preserve relevant financial accounts, contracts, and electronic data to prevent evidence from being lost or tampered with; Second, sort out the business chain involved in the case, initially distinguish between the acts of the unit and those of individuals, and define the responsible parties; Third, as soon as possible, entrust professional criminal compliance lawyers to intervene, conduct compliance checks, cooperate with the investigation, and design rectification plans; Fourth, actively return the illegal proceeds and seek the victim's forgiveness, and submit effective compliance rectification as a basis for leniency. Throughout the process, we should rely on facts and laws, and never believe in connections or promises of guaranteed victory. We should eliminate risks before the case is filed and punished.

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 situation.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with evidence materials, 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 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.