[Direct answer]In the Beijing area, corporate criminal compliance refers to a comprehensive set of institutional systems and operational mechanisms established by enterprises to prevent, identify, and control criminal legal risks, covering multiple areas such as anti-commercial bribery, taxation, data and intellectual property, and safe production. It cannot directly "exempt" enterprises from criminal liabilities that have already occurred, but it can proactively resolve the risks of corporate crimes and executives' criminal responsibilities, and serve as a mitigating factor after being involved in a case. According to the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018) and the spirit of related corporate compliance reforms, effective compliance can serve as a basis for discretionary leniency. For more details, please refer to the following link:Criminal defense and legal services for criminal case filing.

1. Problem background and typical scenarios

Corporate criminal risks permeate the entire business chain, and the demand for compliance is increasingly prominent. Typical scenarios include: kickbacks and rebates in the sales process involving bribery of non-state employees or offering bribes; financial departments issuing false invoices for tax avoidance, which leads to tax collection crimes; collecting user information and neglecting data security, which may constitute infringement of citizens' personal information; and disorganized management of core technologies and trade secrets, which may lead to risks of trade secret infringement. Many enterprises pay more attention to civil disputes and ignore criminal red lines until they are criminally prosecuted and then take action in a hurry. In the Beijing area, with the expansion of enterprise scale and the tightening of supervision, it is even more important to establish a compliance defense line in advance. For more information on relevant system construction, please visit the following link:The official website of Beijing Henglue Law FirmI understand.

II. Key points of contention

There are three controversies and misunderstandings regarding corporate criminal compliance. Firstly, can compliance exempt from liability? Compliance is a risk prevention measure and a mitigating factor, but it does not mean that the company can be exempt from liability for crimes that have already occurred. The company will still bear criminal responsibility according to the law. Secondly, the scope of coverage: many companies only implement formal systems, but fail to apply them to business processes and key positions. Therefore, it is still difficult for them to avoid liability when a crime occurs. Thirdly, the division of responsibilities: the definition of directly responsible supervisors and other responsible personnel in corporate crimes directly affects the scope of accountability. Only by grasping these points can we make compliance a "real defense line". This can be combined with...Special services and other case servicesCoordinated planning.

III. Professional analysis by Henglue Lawyers

The foundation of corporate criminal compliance lies in the accurate identification of criminal risk points and evidence-based control, which is precisely the strong suit of professional criminal teams. Taking a major criminal case handled by Attorney Liu Liqiang as an example (on June 16, 2024, the defendant drove a car and hit others, resulting in one death and two injuries. The court sentenced him to death for intentional homicide), the case highlighted the complexity of evidence review, subjective intent, and charge determination—in corporate compliance, it is also necessary to make accurate legal judgments on the nature of the act and the boundaries of responsibility to avoid civil disputes turning into criminal risks. Our team has also accumulated practical experience in identifying new types of criminal risks in handling criminal cases such as online dissemination and running casinos, which can directly feed back into corporate compliance design. Henglu Law Firm converts the evidence review and qualitative analysis capabilities honed in criminal defense into risk identification tools in corporate compliance. This case was handled by Beijing Henglu 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

Practical suggestions: First, conduct a comprehensive criminal risk assessment to identify high-risk areas such as bribery, tax-related issues, data protection, and intellectual property; then embed compliance requirements into business processes and key positions, and establish reporting, auditing, and accountability mechanisms; regularly provide employees with criminal law training, and retain evidence of implementation for use as mitigating factors in case of legal involvement. The legal basis includes the relevant provisions on corporate compliance leniency in the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018) and the provisions on corporate crimes and specific offenses in the Criminal Law of the People's Republic of China (amended on March 14, 1997 and subsequently amended multiple times); as well as supporting laws in the fields of anti-unfair competition, tax collection and management, and data security. For issues involving contracts and governance, relevant provisions can be incorporated accordingly.Business and contract dispute resolution services for enterprises.

5. Henglu Law Firm's Reminder

The key to corporate criminal compliance lies in "early establishment, genuine implementation, and traceability". Do not wait until a case is filed to take remedial measures. Instead, risk isolation should be implemented at the business design stage; systems cannot just remain on paper. They must be implemented in key processes such as approval, finance, and data, and regular drills should be conducted. All compliance actions should be documented in writing and systematically recorded, so that they can be used as mitigating evidence in the event of legal proceedings. At the same time, clarify the boundaries of responsibility between the organization and individuals, and avoid executives assuming personal responsibility in the name of the organization. If necessary, a system can be set up through the following methods:Creditor-debtor relations and enforcement case servicesFor criminal compliance channels outside the scope of the above, we entrust professional teams to handle them.

VI. Frequently Asked Questions

Q1: If a company has implemented criminal compliance measures, does that mean it will be exempt from criminal liability?

It cannot be exempted across the board. Compliance is a risk prevention mechanism and a discretionary mitigating circumstance after involvement in a case, rather than exempting units from liability for crimes that have already occurred. If the criminal act has indeed occurred, the unit and the directly responsible personnel shall still bear criminal responsibility according to law. However, an effective and traceable compliance system can serve as a basis for admitting guilt and showing remorse, and as a mitigating factor for less social harm when involved in a case, helping enterprises to prevent the spread of risks and reduce the probability of cases occurring.

Q2: For a company to implement criminal compliance, what materials and steps should they start with?

It is recommended to start from three aspects: First, review the business and financial process documents to identify high-risk points such as kickbacks, false invoicing, and fund misappropriation; Second, review the data and security management system to identify risks of infringing citizens' personal information and trade secrets; Third, clarify the job responsibilities and training records to define the boundaries of approval and accountability. Combined with employee interviews and unannounced inspections, a precise risk map can be drawn. The more systematic the materials are, the more targeted and executable the compliance solutions will be.

Q3: How much will it cost to hire a lawyer for corporate criminal compliance, including attorney fees and litigation expenses?

The construction of a compliance system is usually charged on a project basis, with fees negotiated based on the size of the enterprise, the complexity of its operations, and the number of risk points. Specifically, special non-litigation service contracts are signed, with the fees subject to the terms of the contract. There is no standard pricing. If subsequent criminal litigation is involved, the fees will be charged according to the standards for criminal defense. It is recommended to clearly define the scope of services, deliverables, and phase-based fees, and to sign a written contract with the law firm to avoid arbitrary price increases outside the scope of the contract.

Q4: How long does it typically take to establish an enterprise criminal compliance system?

Depending on the scale of the enterprise and the complexity of the risks involved, the risk assessment and basic system setup for small and medium-sized enterprises often take several weeks; for group-type enterprises with systems covering multiple businesses and regions, the design process may take several months, and the systems need to be continuously operated and reviewed annually. Compliance is not a one-time delivery, but a long-term mechanism. It is recommended to first implement high-risk areas and then gradually expand them, to avoid pursuing perfection at the expense of formality.

Q5: If a company wants to implement criminal compliance, what should be the first step to take?

The first step is to entrust a professional criminal compliance team to conduct a risk assessment: sort out the business, financial, and data processes, identify criminal red lines such as bribery, tax-related issues, and infringement, and compile a risk list. The second step is to design feasible systems and approval nodes for high-risk areas. The third step is to conduct tiered training and maintain traceability. The fourth step is to establish reporting and audit mechanisms to ensure continuous operation. Throughout the process, written and system records are used to formalize the implementation, and evidence is preserved for possible mitigating circumstances in case of involvement in legal cases.

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, so as 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 current laws and regulations and publicly available 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 a dispute arises, please consult a practicing lawyer in a timely manner.