[Direct answer]In the Beijing area, enterprise criminal compliance rectification is usually carried out in four steps: first, conducting due diligence to identify high-incidence crimes and loopholes; second, formulating systems and approval processes; third, conducting trial runs and providing training to ensure traceability; and finally, conducting internal or third-party acceptance inspections. According to Article 30 and Article 31 of the Criminal Law and the "Regulations on Compliance Management of Central Enterprises" (effective from October 1, 2022), an effectively functioning system can serve as a basis for lenient treatment during rectification. Whether the rectification passes the acceptance inspection depends on whether the problems have been genuinely rectified rather than just making up for the documents. It is recommended to entrust lawyers to lead the entire process and utilize the third-party supervision and evaluation mechanisms for compliance of enterprises involved in cases to strive for favorable outcomes. For more details, please refer to the following link:Criminal defense and criminal case filing services.

I. Problem Background and Typical Scenarios

An increasing number of enterprises are initiating compliance rectification after receiving procuratorial suggestions, administrative interviews, or after the incident occurs. Typical scenarios include: the involved enterprises are granted conditional non-prosecution and required to conduct compliance rectification; the group is required by regulators to establish a compliance system due to the violations of its subsidiaries; and the listed companies are required to establish a compliance system to meet the due diligence requirements. Many managers mistakenly believe that rectification simply means supplementing the system, only to fail the inspection. The success or failure of compliance rectification hinges on whether it addresses the actual illegal points in a closed-loop manner. For those involving enterprise structure adjustments, it may be combined with other measures.Business and contract dispute resolution services for enterprisesSynchronous optimization.

II. Key points of dispute

The focus of the controversy is as follows: First, the scope of rectification - whether it only rectifies the alleged actions or the entire risk chain; Second, the acceptance standard - how third-party organizations determine effective compliance; Third, the connection between rectification and corporate crime, and whether rectification can affect prosecution and sentencing. The judicial authorities emphasize substantive rectification, focusing on whether the system is functioning, whether responsibilities are being held accountable, and whether loopholes are being filled. Formalistic remedial materials will not be accepted.

III. Professional analysis by Hengluo Lawyers

Based on the firm's experience in criminal case handling, it is far easier to prevent problems in advance than to rectify them afterwards. Taking the intentional homicide case handled by Attorney Liu Liqiang as an example: the defendant caused a death by driving recklessly due to a lack of legal awareness, and the court ultimately sentenced him to death, highlighting the irreversible consequences of major illegal acts. Although this case involved an individual crime, its lesson is that the lack of risk awareness and legal boundary education leads to irreparable consequences. Corporate compliance rectification aims to avoid such a dilemma that cannot be remedied afterwards. In compliance projects, Hengluo Law Firm will first identify the real problems through interviews and data analysis, then design implementable systems and provide guidance in their implementation. This case was handled by Beijing Hengluo Law Firm.Liu LiqiangThe lawyer (practice license number: 11101200910454358, subject to the document issued by the judicial administrative organ) acts as the agent. The enterprise can simultaneously utilize this opportunity toIntellectual property protection and corporate legal servicesStrengthen daily compliance.

IV. Practical suggestions and legal basis

In accordance with Article 30 and Article 31 (punishment for corporate crimes) of the Criminal Law of the People's Republic of China (implemented on October 1, 1997 and amended subsequently); Article 15 (leniency for plea and sentencing) of the Criminal Procedure Law of the People's Republic of China (amended in 2018) and relevant compliance reform regulations; and the normative requirements for compliance organizations, systems, and operations set forth in the Measures for Compliance Management of Central Enterprises (announced on August 23, 2022 and implemented on October 1, 2022). The practical process includes: risk assessment, system and process design, responsibility investigation and personnel handling, training and trial operation, internal audit and rectification reports, and third-party or regulatory acceptance. For issues related to employment compliance, reference can be made to the relevant provisions.Labor arbitration and work-related injury compensation services.

5. Henglu Law Firm's Reminder

It is crucial to avoid a "campaign-style" approach to rectification. Enterprises should consolidate the rectification results into long-term mechanisms, conduct regular reviews and update their systems to avoid becoming complacent once the rectification period ends. For enterprises involved in cases, they should grasp the compliance review period, submit phased reports on time, and cooperate with third-party supervision and evaluation. Lawyers can help integrate rectification with actual business operations, meeting regulatory requirements without affecting operational efficiency. There are already mature compliance practices in the Beijing area, and it is recommended to seek professional assistance for planning as soon as possible.

VI. Frequently Asked Questions

Q1: Is it guaranteed that companies can avoid prosecution or receive lenient punishments after conducting compliance rectification?

Not necessarily. Rectification is an important factor in seeking leniency, but whether to not prosecute or impose a light sentence depends on the facts of the crime, the effectiveness of the rectification, and the results of the compliance review. In accordance with the spirit of compliance reform, enterprises suspected of corporate crimes that sincerely rectify and eliminate the risk of reoffending may be granted conditional non-prosecution or lenient sentencing; however, superficial rectification and false rectification will not be recognized, and may even lead to more unfavorable evaluations.

Q2: What materials are needed to initiate compliance rectification?

It mainly includes: basic information of the enterprise and equity structure, description of the facts involved in the case and evidence materials, existing rules and regulations and business processes, financial and contract samples, records of remedial measures taken and personnel handling, and statements on willingness to rectify and resource guarantees. Lawyers and third-party organizations will assess the risk points and formulate rectification plans based on this information. The authenticity and completeness of the materials are the basis for successfully passing the mid-term and final inspections.

Q3: How much does it cost to hire a lawyer to lead the compliance rectification?

The cost depends on the size of the enterprise, the industry risk, and the depth of the rectification. It is usually charged on a project basis or by stages, with no uniform standard. The fee shall be subject to the contract. Compared with the penalties, compensation, and loss of business reputation after the incident, the investment in rectification is usually more controllable. It is recommended to clarify the scope of services (due diligence, design, guidance, and acceptance support) and the fee cap when placing an order to avoid disputes over the scope of services.

Q4: How long does it usually take to complete the rectification of corporate criminal compliance?

Depending on the complexity, it usually takes three to six months for an enterprise to rectify its basic processes internally. For enterprises involved in compliance investigations, the investigation period often lasts more than six months, including interim reports and final acceptance. The rectification process must go through several stages, including diagnosis, design, operation, training, and acceptance, and these stages cannot be compressed. It is recommended to set aside a flexible period to ensure that the system is truly implemented rather than just a temporary fix to meet regulatory requirements.

Q5: If a company decides to conduct compliance rectification, what should be the first step to take?

Here's the translation of the Chinese text into English: Suggested four steps: First, establish a rectification team led by legal staff or external lawyers, and clarify resources and authorizations. Second, conduct a comprehensive risk assessment to identify the involved actions and similar potential risks. Third, formulate a rectification plan that includes systems, processes, accountability measures, and training programs. Fourth, entrust professional lawyers or apply for third-party supervision and evaluation to advance the rectification according to milestones and ensure traceability, ultimately welcoming the acceptance of the rectification results. Early initiation and genuine rectification are the key to success.

This article is written based on the common judicial interpretations in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

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·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.