[Direct answer]In the Beijing area, it cannot be directly exempted, but it can substantially influence the handling outcome. The value of criminal compliance lies in preventing risks in advance and seeking leniency during the process: if an enterprise establishes an effective compliance system and completes compliance rectification, the procuratorial organ may make a decision not to prosecute or propose lenient sentencing recommendations in accordance with the law; however, once a corporate crime is established, the directly responsible person in charge may still be held accountable. According to Articles 30 and 31 of the Criminal Law of the People's Republic of China (the current effective version will come into effect on March 1, 2024), a corporate crime will result in a fine for the unit and criminal penalties for its directly responsible person in charge and other directly responsible personnel; Article 13 of the Criminal Law of the People's Republic of China stipulates that if the circumstances are significantly minor and the harm is not great, it shall not be considered a crime. Whether exemption from liability depends on whether the compliance is genuine and effective, the severity of the crime, and the rectification situation. It is recommended to conduct a compliance check before starting high-risk business operations.

I. Problem background and typical scenarios

In recent years, corporate criminal compliance has evolved from a concept to a mandatory requirement, as the sources of risk for business owners have become increasingly evident. There are three typical scenarios: First, financing-related businesses may cross legal boundaries. Activities such as private lending, private equity, and loan assistance are prone to violating the red line of illegally absorbing public deposits. Second, the transfer of interests in business transactions may lead to corporate bribery or bribery of non-state employees. Third, administrative violations in the fields of data, taxation, environmental protection, and bidding and tendering may escalate into criminal prosecutions. Most enterprises only realize the importance of compliance after their accounts are frozen or their executives are subject to coercive measures, at which point they rush to implement compliance systems, but the room for improvement has already been greatly limited. When handling similar cases in the Beijing area, the authorities conduct detailed inspections of the actual implementation of compliance plans, and it's difficult for paper-based documents to pass the review.Criminal case filing and criminal defenseThe timing of their intervention directly determines the subsequent development of the situation.

II. Key points of dispute

First, can compliance be used as a justification for exoneration? Current laws do not directly list compliance as an exemption clause. Compliance mainly plays a role through paths such as significantly minor circumstances, determination of the unit's will, and attribution of illegal gains, which need to be combined with specific criminal charges to be demonstrated. Second, the separation of unit responsibility and individual responsibility. Whether it reflects the unit's decision-making, whether the benefits belong to the unit, and the hierarchical position of the actors in the decision-making chain directly determine whether to hold the unit or the individual accountable. Third, whether the compliance plan is effective. Whether the system is implemented, whether there is supporting training and record-keeping, and whether timely action is taken after discovering violations are the core evaluation points. Fourth, the application conditions of rectification and non-prosecution. The scope of application, the rectification period, and the conclusions of third-party supervision and evaluation all affect the outcome, and there are differences in the interpretation of the application criteria in different regions. Fifth, the differences in the effectiveness of pre-emptive prevention and post-remedial measures. Pre-emptive compliance affects whether risks arise, while post-remedial rectification affects the handling results of existing risks.

III. Professional analysis by Henglue Lawyers

Compliance addresses the risk boundaries in advance. Once the case enters the criminal process, what can be fought for are only the qualification of the crime, the circumstances of the crime, and the way of handling the case. The defense experience of a major criminal case handled by our firm illustrates this point very well. On the night of June 16, 2024, a dispute broke out in the laboratory of a mixing station. Staff members Zhang Bin, Li Yuanzheng, Zhao Gang, and Zhou Xiaohua had a conflict with Zhang Daqiang during drinking. After being persuaded to stop the conflict, Zhang Daqiang was sent back to his dormitory. Later, he drove a white vehicle at a speed of about 60 to 62 kilometers per hour and rammed into the laboratory, destroying the door and then rushing out through the back wall, resulting in the death of Zhao Gang on the spot, injuries to Zhang Bin and Li Yuanzheng, and the involvement of Zhou Xiaohua. The victim's wife, Liu Shufen, entrusted our firm's lawyers to represent her in the criminal incidental civil action.

The controversy of this case focuses on three aspects: whether Zhang Dajiang had the intent to kill, whether he could be considered to have surrendered voluntarily after actively calling the police and lying about the brake failure and repeatedly retracting his confession, and whether his actions should be classified as intentional homicide or endangering public safety by dangerous methods. The family claimed that he should be severely punished and compensated for losses such as death compensation and funeral expenses, and the public prosecution organ brought charges against him for intentional homicide. After comprehensively reviewing physical evidence, documentary evidence, witness statements, the defendant's confessions, appraisal opinions, and on-site inspection materials, the attorney refuted each point: the clear verbal expression before the impact, accelerating without taking any evasive action when less than 5 meters away from the door, and sufficient proof of intent to kill; concealing core facts and making contradictory statements during the call did not meet the requirements of voluntary surrender and truthful confession; normal work communication did not constitute victim's fault in the criminal law sense; and the act of committing harm against specific targets should be classified as intentional homicide. The court adopted the above opinions, determining that Zhang Dajiang intentionally and illegally deprived others of their lives by driving a vehicle to commit the crime, resulting in one death and two injuries. The crime circumstances were extremely serious, caused great social harm, and he showed no remorse. He was sentenced to death for intentional homicide, and the civil litigation part supported the family's compensation request. 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. For enterprises and entrepreneurs, the value of this defense process lies in the following aspects:Corporate law and complianceWhat we need to do is to prevent cases from happening, rather than determining the nature and circumstances of the case after it has occurred.

IV. Practical suggestions and legal basis

According to Article 30 and Article 31 of the Criminal Law of the People's Republic of China (the current effective version of which came into effect on March 1, 2024), a unit crime is subject to a dual punishment system; Article 13 of the Criminal Law of the People's Republic of China defines the concept of crime and stipulates a proviso; Articles 176 (Illegal Absorption of Public Deposits) and 393 (Bribing by a Unit) of the Criminal Law of the People's Republic of China specify the corresponding responsibilities; Article 15 of the Criminal Procedure Law of the People's Republic of China (amended on October 26, 2018) stipulates that pleading guilty and accepting punishment may lead to lenient treatment, and Article 177 Paragraph 2 provides that if the crime is minor and does not require or exempt from punishment according to law, the People's Procuratorate may make a decision not to prosecute. The specific application of compliance rectification for involved enterprises shall be subject to the current effective laws, regulations and judicial rulings. Action list suggestions: First, sort out high-risk links such as financing, bidding and tendering, data, taxation, and environmental protection according to business lines to form a risk list; Second, embed compliance requirements into approval processes and contract texts, and provide supporting training and written records to ensure verifiability; Third, clarify the internal reporting path and handling authority for criminal clues to avoid individual actions being identified as the unit's will; Fourth, when facing investigations or cases, immediately entrust lawyers to meet relevant personnel, assess the nature of the case, and simultaneously study a combination of compliance rectification and mitigating circumstances; Fifth, synchronously advance the arrangements for involved funds and compensation, as the compensation situation directly affects the outcome of the case. The evidence system for related commercial disputes and contract arrangements can be combined with the above.Business and contract disputes in enterprisesIt's an organization that integrates various experiences.

5. Henglue Law Firm's Advice

Compliance is not a get-out-of-jail-free card, nor is it a process where you can just submit a few documents after the fact to pass the review. Three points need special attention: First, under the dual-punishment system, the unit and the responsible personnel are two separate subjects of responsibility. Individual responsibility cannot be absorbed by the enterprise; Second, the effectiveness of compliance relies on daily record-keeping. Meeting minutes, approval records, training attendance records, and complaint handling records are all key evidence; Third, the strategies and priorities differ at different stages of the case: investigation, review and prosecution, and trial. The earlier you get involved, the more influence you can exert on the outcome. For enterprise employees, it's equally important to truthfully explain their job responsibilities and scope of knowledge, without exaggerating or concealing anything. For cross-border business, capital cross-border transactions, or overseas partners, you should also assess the additional impact on jurisdiction and the disposition of the involved assets.Specialised legal servicesYou can combine compliance checkups, internal investigations, and crisis responses as needed. If you have received a notice from the case-handling authority, it is recommended that you contact them as soon as possibleBeijing Henglue Law FirmArrange an assessment of the case to clarify the risk points, time nodes, and possible solutions first.

VI. Frequently Asked Questions

Q1: If a company has implemented criminal compliance measures, does that mean it will definitely not be held criminally liable?

Not necessarily. Compliance is not a statutory exoneration ground, but it will affect whether a case is filed, whether prosecution will be initiated, and the sentencing range. For enterprises with a genuine and effective compliance system, where the illegal proceeds have been returned and the crime is minor, there is a chance to seek non-prosecution or exemption from criminal punishment; if the compliance is just a formality or the actions have caused serious consequences, they will still be prosecuted according to law. The key to judgment is whether the compliance has been implemented and whether it directly corresponds to the business processes involved in the case.

Q2: What materials are needed to ensure corporate criminal compliance?

These generally include business licenses and equity structure documents, business process diagrams and approval authority tables, contracts and financial transaction records, compliance systems and training records, internal reporting and handling records, documents dealing with criminal clues, and financial transaction records of the involved parties, as well as audit or appraisal materials. For disputes involving corporate crimes, it is also necessary to prepare meeting minutes and approval signatures, etc., which can prove the decision-making hierarchy and ownership of interests.

Q3: What is the approximate cost of criminal compliance legal services?

There is no unified standard. Fees are usually charged separately at different stages such as compliance physical examination, system construction, and rectification related to legal cases. The complexity of the case, the size of the enterprise, and whether it involves third-party supervision and evaluation will all affect the quotation. It is recommended to sign a written contract of entrustment, clearly defining the scope of services, the results of each stage, and the fees charged, to avoid disputes arising afterwards. The specific fees shall be subject to the provisions of the contract of entrustment between the parties, and lawyers are not allowed to make any promises about the outcome of the case.

Q4: How long does it usually take from completing the compliance rectification to achieving results?

Compliance inspections and system construction are generally calculated on a weekly basis. The time limit for compliance rectification involving cases is determined by the case-handling authority and is usually completed and evaluated within a few months. Criminal cases also have statutory time limits for investigation, review and prosecution, and trial, which will proceed in parallel. The overall cycle is subject to the arrangements of the case-handling authority, and enterprises should prepare materials in advance to avoid delays.

Q5: The company has been involved in the case. What should be done first?

First, stabilize two things: first, preserve evidence and information, and organize and file contracts, approvals, fund flows, and correspondence emails according to the timeline to avoid the loss of information; second, entrust professional lawyers to intervene as soon as possible to evaluate the involved links, responsible parties, and possible mitigating circumstances, and then decide whether to take the initiative to explain, return illegal gains, and apply for compliance rectification. Never give self-incriminating statements or destroy materials, as such actions will significantly aggravate the consequences.

The above answer is based on the judicial practice in Beijing. The adjudication guidelines in other provinces and cities may vary. For specific cases, please refer to the local rules and evidence situation.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials to avoid missing the statutory time limit.Criminal defense legal services·Attorney Liu Liqiang·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on the current effective 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 you encounter disputes, please consult a practicing lawyer in time.