[Direct answer]Criminal compliance helps avoid criminal penalties through two approaches: first, conducting a criminal risk assessment beforehand, focusing on business models, capital flows, invoice taxation, advertising campaigns, and data and labor management to eliminate risks before a case is filed; second, if a company or employee is involved in criminal activities, they can seek leniency through compliance rectification and plea bargaining (Article 15 of the Criminal Procedure Law), and those who meet the conditions can strive for a conditional non-prosecution (Article 177, Paragraph 2) or bail pending trial. According to Articles 30 and 31 of the Criminal Law, a unit that commits a crime will be subject to double punishment. The core of compliance is to cut off the identification chain between the unit's will and the illegal proceeds. For more information, please consult the relevant legal experts.Criminal defense and legal services for criminal case filingAndBeijing Henglue Law Firm.

1. Problem background and typical scenarios

In fields such as the platform economy, live-streaming sales, investment and finance, renewable resources, and pharmaceutical procurement and sales, business models often contain gray areas: gambling or pornographic functions are embedded into live-streaming interfaces, unlicensed fund pools attract public funds, false invoices are used to offset costs, and advertising campaigns cross the line of false propaganda. Many enterprises do not commit crimes intentionally, but lack awareness of the criminal boundaries of their business models, only realizing the problem when the police arrive. High-risk scenarios also include employees bribing individuals to meet performance targets, gangs using corporate shells to commit fraud, and involving enterprises in corporate crime investigations. Criminal penalties for enterprises mean fines, revocation of qualifications, detention of responsible persons, and even business interruptions. The cost of compliance in advance is far lower than that of firefighting afterwards.

II. Key points of contention

  • Is it a corporate crime or an individual crime? According to Articles 30 and 31 of the Criminal Law, if an act reflects the will of the unit, benefits the unit, and the illegal income belongs to the unit, it constitutes a corporate crime. The unit shall be fined and the directly responsible persons shall be investigated for criminal responsibility. If the employee's individual behavior has nothing to do with the unit, the responsibility should not be transferred to the enterprise.
  • The connection between compliance rectification and leniency: Under the compliance reform of the involved enterprises, effective rectification can be combined with plea bargaining to strive for non-prosecution or lenient punishment, but "formal compliance" is difficult to be recognized. The authenticity and effectiveness of the rectification are the focus of the review.
  • The scope of response to coercive measures: Whether the person in charge or key employees meet the conditions for bail pending trial and whether they pose a social danger directly determine whether the enterprise can maintain its operations during the investigation period.

III. Professional analysis by Henglue Lawyers

The criminal risks arising from the enterprise's business model going beyond its scope can be clearly seen from a case. At the end of 2025, W* failed in her business and faced employment difficulties, so she contacted an overseas online gambling platform and started working as a live streamer. However, the platform embedded gambling advertisements and recharge entry points into her live stream interface. W* claimed that she only engaged in ordinary chat interactions and did not actively induce others to place bets. She also argued that she had no control over the implanted gambling functions. When the public security organ investigated the platform, a number of streamers, including her, were criminally detained on suspicion of operating a gambling house. Her limited remuneration was also identified as illegal criminal proceeds together with the platform's gambling funds. On December 20, 2025, W* was criminally detained, and her family entrusted Zhu Guiying, a lawyer from Henglue Law Firm, to act as her defense attorney.

After the meeting, Attorney Zhu Guiyin focused on four key points: Firstly, W* played a minor role in the joint crime, only providing traffic-driving assistance and not participating in the operation or profit-sharing. According to Article 27 of the Criminal Law of the People's Republic of China, he should be identified as an accomplice. Secondly, after being arrested, W* truthfully confessed his crimes, expressed remorse, and voluntarily surrendered all his illicit gains and paid the fine in advance. Thirdly, W* suffers from diseases such as pituitary tumor and hepatitis B that require continuous treatment, and prolonged detention would harm his health. Fourthly, he is a first-time offender with no criminal record and no likelihood of fleeing or colluding with others to conceal evidence. Based on these arguments, the attorney drafted an application for bail pending trial in accordance with Article 67 of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018). After reviewing and adopting the main arguments, the case-handling organ granted W* bail on January 19, 2026, thirty days after his detention. This case serves as a warning to businesses: If platforms or partners embed illegal functions such as gambling into their operations, both practitioners and enterprises may face prosecution. Conducting criminal compliance reviews of business models, promotion channels, and funding sources in advance is the fundamental way to avoid criminal penalties. 会见结束后，朱律师抓住四个关键点：一是W某在共同犯罪中地位低、作用小，仅提供引流帮助、未参与经营与利润分成，根据《中华人民共和国刑法》第27条应认定为从犯；二是W某到案后如实供述、认罪悔罪，并主动退缴全部所得、预缴罚金；三是W某患有脑垂体瘤、乙肝等需要长期治疗的疾病，长期羁押不利于病情控制；四是系初犯偶犯、无前科、无逃匿串供可能。律师据此围绕《中华人民共和国刑事诉讼法》（2018年10月26日修正）第67条撰写《取保候审申请书》。办案机关经审查采纳主要意见后，2026年1月19日，W某被依法批准取保候审，重获自由。本案对企业的警示在于：平台或合作方业务嵌入赌博等违法功能的，从业者和企业都可能被追诉——事前对业务模式、推广渠道、资金来源做刑事合规审查，才是避免刑事处罚的根本。

IV. Practical suggestions and legal basis

At the legal basis level: Articles 30 and 31 of the Criminal Law of the People's Republic of China (amended on March 14, 1997) establish the principle of corporate criminal liability and double punishment, Article 176 stipulates the crime of illegally absorbing public deposits, Article 266 stipulates the crime of fraud, and Article 303 Paragraph 2 stipulates the crime of operating gambling houses, all of which are high-incidence criminal charges for enterprises; Article 15 of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018) establishes the lenient punishment system for plea bargaining, Article 67 stipulates the conditions for bail pending trial, and Article 177 Paragraph 2 stipulates the relative non-prosecution for minor crimes, which are the procedural basis for enterprises involved in the case to strive for acquittal. At the practical advice level: Conduct a criminal risk check once a year, focusing on verifying the legality of business models, the compliance of fund flows and bills, and the traceability of promotional language and data employment; For those cooperating with external platforms, clarify compliance obligations and exit mechanisms in the contract; Hire a lawyer immediately after being involved in a criminal case, and simultaneously promote bail, restitution, compensation, and rectification plans. For daily business operations and contract compliance issues of enterprises, they can also be combined with other aspects.Intellectual property protection and corporate legal servicesCoordinate and arrange everything in an organized manner.

5. Henglue Law Firm's Reminder

The value of criminal compliance lies not in the thickness of the documents, but in whether it can prove that the enterprise has fulfilled its obligations of compliance management: systems, training, traceable approval, and employee commitments are all indispensable. Corporate executives should keep in mind two bottom lines—not introducing gray businesses for short-term profits, and not destroying or falsifying evidence or colluding with others after the incident. The latter will directly destroy the possibility of lenient punishment. The above-mentioned platform streamers are involved in the case of opening casinos, which is handled by Beijing Henglue Law Firm.Zhu GuixinThe lawyer (practice license number: 11101202011246828, subject to the document issued by the judicial administrative organ) acted as the agent. The client was granted bail according to law after 30 days of criminal detention. If your company has received a notice of investigation or interview, it is recommended to immediately consult a professional lawyer to evaluate the response plan.

Q1: How to distinguish between corporate crimes and individual employee crimes?

There are three key points to consider: whether the act reflects the unit's will (through decision-making procedures or the instructions of the responsible person), whether it benefits the unit, and whether the illegal proceeds belong to the unit. If all three conditions are met, the unit will be held criminally liable. According to Article 31 of the Criminal Law of the People's Republic of China, the unit will be fined, and the directly responsible person in charge and other directly responsible persons will be sentenced to criminal punishment. If the act is carried out by an employee for personal performance or private gain, and the unit is unaware of it and does not benefit from it, it constitutes an individual crime. In practice, contracts, approval records, and the flow of funds are key evidence. Enterprises should keep records of decision-making to prove that they have fulfilled their management obligations and avoid being implicated and identified as a unit crime.

Q2: If a company conducts compliance rectification, will it definitely not be prosecuted?

Not necessarily. The prerequisite for leniency in compliance rectification are that the rectification must be genuine and effective, and the criminal circumstances must meet the conditions. According to Article 177, Paragraph 2 of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018), only when the criminal circumstances are minor and do not require sentencing or exemption from punishment according to the Criminal Law can the procuratorate decide not to prosecute; for more serious circumstances, compliance rectification can still be considered a mitigating circumstance, combined with Article 15 to strive for lenient punishment through admitting guilt and accepting the punishment. The third-party supervision and evaluation mechanism will review the implementation of the rectification plan. On-paper compliance and false rectification not only fail to obtain leniency, but may also worsen the evaluation. The rectification should form verifiable evidence under the guidance of lawyers and compliance consultants, rather than retroactively adding a set of institutional documents.

Q3: How much does it cost to build a criminal compliance system for a company?

The cost depends on the size of the enterprise, the industry risk, and the complexity of the business. It is generally priced in three modules: annual criminal risk checkups are charged on a project basis, system construction and process transformation are charged on a scope basis, and training and regular legal advisory services are charged on an annual basis. For large platform-type enterprises, the investment in multi-line reviews of business models, funds, data, and advertising will increase significantly. Compared with the cost of criminal penalties—such as fines imposed on the unit, detention of responsible persons, and losses of qualifications and orders—compliance investments are a low-cost form of prevention. It is recommended to first conduct a risk assessment to determine priorities, and then decide on the annual budget and advisory arrangements to avoid purchasing "comprehensive" documents all at once but having no one to implement them.

Q4: If an employee commits a crime, is the company necessarily liable for it?

Not necessarily. If the crime committed by an employee does not represent the unit's will, does not benefit the unit, and the proceeds do not belong to the unit, the responsibility shall be borne by the employee personally, and the company shall not constitute a unit crime. However, if the company has faults, such as tacitly allowing kickbacks, receiving invoices despite knowing they are falsely issued, or ignoring illegal business activities, it may be identified as an accomplice or constitute a unit crime. Enterprises should fulfill their management obligations through systems and traceable evidence: clear compliance rules, transaction approval records, employee training and commitment letters, and records of handling abnormal behaviors. If clues of employee involvement in crimes are discovered, taking prompt measures to stop losses, reporting and cooperating with investigations are key actions to delimit responsibilities and prevent losses from expanding.

Q5: The company is being investigated by the public security organ. What should we do first?

The first step is to immediately engage a criminal lawyer. Do not attempt to coordinate the statements of the employees involved or delete or modify evidence on your own. Such actions may constitute obstruction of justice or destruction of evidence, which will only exacerbate the risks. After the lawyer gets involved, he/she can understand the suspected charges and the scope of the investigation, provide defense for the personnel who are interrogated or subject to compulsory measures, apply for bail pending trial in accordance with Article 67 of the Criminal Procedure Law of the People's Republic of China when meeting the relevant conditions, and assess the boundaries of responsibilities between the company and individuals. At the same time, the company should, under the guidance of the lawyer, seal and preserve relevant documents and data, sort out the business processes and prepare explanatory materials, assess the possibilities of returning illicit gains, making compensations, and rectifying and self-correcting, so as to create conditions for subsequent plea bargaining and compliance leniency.

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 Zhu Guiyin·Beijing Henglu Law Firm