[Direct answer]In the Beijing area, the core competence of criminal compliance lawyers is to translate the industry's operational logic into criminal risk identification. Key industries that need to be understood include: financial asset management (illegal public deposit-taking risks), pharmaceuticals and medical devices (commercial bribery crimes), construction projects (embezzlement, misappropriation of funds, collusion in bidding), Internet platforms (operating gambling houses, assisting in information network crime activities, disseminating obscene materials), foreign trade and customs (smuggling crimes), etc. According to Article 30, Article 163, Article 176, Article 271, and Article 287(2) of the Criminal Law of the People's Republic of China, the high-risk actions in different industries vary. Enterprises should establish a criminal risk list based on their business scenarios and conduct compliance reviews in advance at the contract signing, employee hiring, financial and taxation, and promotion stages. For more details, please refer to the relevant provisions.Intellectual property protection and corporate legal services.

I. Problem background and typical scenarios

Criminal risks in corporate operations often emerge in the stage of "business first, compliance lagging behind": sales promise to guarantee returns and interest payments to meet performance targets; finance departments use personal accounts to evade taxes; marketing departments promote content related to gambling and pornography to attract traffic; and executives accept kickbacks in procurement. Typical scenarios include: Internet finance platforms collapsing and affecting practitioners; pharmaceutical companies' academic conference fees being deemed commercial bribes; construction companies' project managers embezzling material funds; and online platforms failing to fulfill their duty of managing users' illegal activities. These risks are not all caused by "intentional crimes", but more often by conflicts between business models, industry practices and criminal boundaries. Lawyers who understand both the industry and criminal law need to identify these risks in advance. Corporate compliance construction can be combined withCriminal defense and criminal case filing services\nRetrospectively analyze the risk points.

II. Key points of dispute

The disputes over criminal compliance focus on four points. Firstly, the boundary between corporate crimes and individual acts: According to Article 30 of the Criminal Law, only those acts defined as corporate crimes by law will be subject to criminal liability for the unit. When an employee's individual acts are attributed to the unit, it depends on whether the acts have been approved by the unit's decision-making body and whether they benefit the unit. Secondly, the responsibilities of executives and the risks of their positions: the scope of pre-emptive obligations for key positions such as actual controllers, finance, and sales. Thirdly, the mapping of business models and criminal charges: the same business may violate different criminal charges in different industries, and the compliance plan must take into account the regulatory characteristics of the industry. Fourthly, the actual effectiveness of compliance rectification: in the context of compliance reforms in involved enterprises, whether the compliance system can serve as a basis for leniency depends on the authenticity and effectiveness of the rectification. Relevant contractual and governance issues can be referred to for further study.Business and contract dispute services for enterprises.

III. Professional analysis by Hengluo Lawyers

The industry awareness determines the granularity of the compliance plan. In a criminal case handled by Attorney Liu Liqiang, a mixing station worker caused a car crash due to a dispute over construction quality, resulting in one death and two injuries. The lack of a mechanism to resolve internal conflicts within the enterprise eventually escalated into a major criminal case, which is precisely the kind of scenario that requires proactive prevention in workplace safety and personnel management. This case was handled by Beijing Henglu Law Firm.Liu LiqiangAttorney (Practice Certificate No.: 11101200910454358, subject to the document issued by the judicial administrative organ). In the case of disseminating obscene materials handled by Shang Jiangpeng, the client was detained after reposting three obscene videos on a forum, which were viewed approximately 5,000 times in total. The boundaries of platform content review and user behavior management are the key points of internet companies' compliance. In the case of operating a gambling house handled by Zhu Guiying, the client was identified as an accomplice and had his illegal income taken into account after working as a chat streamer on an overseas online gambling platform. Gambling-related traffic diversion and position risk screening are equally important. The three cases belong to different industries, but they all point to one conclusion: compliance solutions must be implemented in specific business operations.

IV. Practical suggestions and legal basis

The legal basis is Article 30 (Corporate Crimes) of the Criminal Law of the People's Republic of China, Article 163 (Bribe-taking by Non-State Staff), Article 176 (Illegal Absorption of Public Deposits), Article 271 (Embezzlement), Article 287 (Aiding Information Network Crime Activities), and Article 303 (Operating Gambling Houses) — all of which are based on the current effective version of the Criminal Law, which has undergone multiple amendments, with the latest amendment taking effect on March 1, 2024 (Amendment XII to the Criminal Law); on the procedural level, it can be combined with Article 15 (leniency for guilty pleas and confessions) of the Criminal Procedure Law of the People's Republic of China and the enterprise compliance reform initiated by the Supreme People's Procuratorate (launched as a pilot project in March 2020 and fully implemented in April 2022). Practical suggestions: First, draw up a criminal risk list by industry, clearly identifying high-risk positions and actions; Second, embed compliance review nodes into contracts, promotions, employment, and taxation systems; Third, conduct due diligence on business partners to avoid aiding others in committing crimes; Fourth, establish crisis response plans, fixing evidence immediately after an incident and distinguishing between corporate and individual responsibilities. For information on corporate legal and compliance services, please visitBeijing Henglu Law FirmGot it.

5. Hengluo Law Firm's Advice

Compliance is not a "documentary project" of the legal department, but a legal translation of business operations. The most common mistake made by enterprises is to regard compliance as a fire-fighting measure after the fact — making up systems after an incident occurs. This not only makes it difficult to determine the authenticity of the rectification, but also misses the opportunity for leniency. It is recommended that enterprises choose lawyers who understand both industry logic and criminal norms and involve them from the stage of business model design. Translate "can we do it" into "what extent can we do it without crossing the line". At the same time, pay attention to preserving the traces of compliance implementation: training records, approval processes, and written opinions refusing to cooperate are all evidence of the enterprise's due diligence. For financial and foreign-related businesses with superimposed compliance requirements, they can also combine them with each other.Financial capital and cross-border services involving foreign affairsComprehensive evaluation.

VI. Frequently Asked Questions

Q1: If a company hires a criminal compliance lawyer, will it avoid being held criminally liable?

This interpretation is incorrect. The value of compliance construction lies in prevention and leniency after the fact, rather than a "get-out-of-trouble pass." If a unit or individual has already committed a crime, whether they will be held accountable still depends on the facts and evidence of the crime. If the compliance system is well-established, the company actively rectifies its mistakes after the incident, and admits guilt and accepts punishment, they may seek lenient treatment under the framework of the company's compliance reform, but this requires genuine and effective rectification. What lawyers can do is identify high-risk areas, design compliance processes, and strive for the best possible outcome after an incident. Any promise of "no problem" does not comply with professional norms.

Q2: When a company conducts a criminal compliance review, what materials should it prepare?

The core materials include: business license and company charter, organizational structure and key position descriptions, sample contracts for main business operations, financial systems and fund transfer processes, marketing and sales policies, employment and compensation systems, data and information security systems, as well as past penalties and litigation records. The goal of the investigation is to identify the mapping points between "business actions" and "charges", such as sales promises of guaranteed returns and interest payments corresponding to the risk of illegally absorbing public deposits, personal account receipts and payments corresponding to the risk of off-book funds and tax evasion, and promotion content involving gambling and pornography corresponding to criminal risks. The more complete the materials are, the more accurate the risk list will be.

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

Compliance services are typically charged on a project basis, with fees determined through negotiation based on the company's size, business complexity, and scope of investigation, without a standardized pricing model. Special physical examinations, system establishment, training, and annual consultancy services are charged differently. Risk-based fees do not apply to compliance and criminal defense services. According to the "Measures for the Administration of Lawyer's Service Fees", the service content, duration, and fees should be clearly specified in the contract. It is recommended that enterprises first conduct a small-scale risk assessment and then decide whether to invest in systematic construction, prioritizing budget allocation to high-risk business lines.

Q4: How long will it take for the criminal compliance system to take effect?

It depends on the scale of the enterprise and the complexity of its operations. A single risk investigation typically takes several weeks to reach a conclusion; the establishment of systems and the integration of processes generally require several months; and forming a compliance system covering major business lines and leaving execution traces often requires more than half a year of continuous operation. It should be emphasized that the "effectiveness" of compliance not only lies in the formulation of systems, but also in the actual implementation of such aspects as training, approval, and traceability — this is also the focus of reviewing and rectifying the authenticity of compliance reforms in enterprises involved in cases. It is recommended to proceed in stages and prioritize addressing the most urgent high-risk issues first.

Q5: If a company has already been suspected of committing a crime, can it still receive lenient treatment during the compliance rectification process?

There's a chance, but it's subject to time limits and conditions. Under the framework of the reform of corporate compliance for enterprises involved in criminal cases initiated by the Supreme People's Procuratorate, the enterprises involved can plead guilty and accept punishment, stop illegal activities, cooperate with the investigation, actively make restitution, establish or improve the compliance system, and pass the compliance review to strive for the procuratorial organ to make a decision of non-prosecution or propose a lenient sentencing recommendation at the review and prosecution stage. The key actions include: hiring a lawyer to intervene as soon as possible, distinguishing between the responsibilities of the unit and individuals, fixing favorable evidence, initiating substantive rectification and leaving execution records. Never just do "paper compliance" after the incident. The authenticity of the rectification directly determines the scope of leniency.

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 Hengluo Lawyers about specific situations.

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 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.