[Direct answer]In the Beijing area, the criminal risk check is a "criminal risk scan" of the enterprise's business activities, with a focus on screening six major areas: financial and taxation risks (false invoicing, tax evasion), financing risks (illegal fund-raising, loan fraud), operational risks (contract fraud, commercial bribery, collusive bidding), intellectual property risks (trademark infringement, trade secret infringement), employment and data risks (refusal to pay labor remuneration, infringement of citizens' personal information), and qualification risks in specific industries (unlicensed operation, operation beyond the scope of business). The outcome of the check is usually a risk list and a rectification roadmap, which helps enterprises understand "where they might violate regulations, the consequences of such violations, and how to rectify the situation".

1. Problem background and typical scenarios

Many companies only discover their criminal risks after being investigated: the finance department says "this is how the industry handles invoices," the sales department says "kickbacks are a common practice," and the boss then realizes that the so-called "industry practices" have already involved criminal activities. The value of a criminal risk assessment is to turn this vague understanding into a clear list—which behaviors are high-risk red lines, which are gray areas that need to be isolated, and which can be compliant through established systems.

II. Key points of contention

First, the granularity of the physical examination. A general system review cannot identify problems, so it is necessary to delve into specific transaction samples: randomly checking invoices, contracts, approval records, and fund flows. Second, the method of risk grading. It is graded according to the probability of occurrence and the severity of the consequences. Red-line issues (such as the already occurred false invoicing behavior) need to be dealt with immediately, and existing problems require remedial solutions. Third, the connection between the physical examination and rectification. Only issuing a report without changing the system is equivalent to not conducting a physical examination. Rectification should be implemented in the form of processes, authorizations, and training.

III. Professional analysis by Henglue Lawyers

This case is 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. The judgment of risk examination comes from the "reverse reasoning" based on litigation experience. Beijing Henglue Law Firm has encountered numerous "avoidable situations" in criminal cases: in a case of intentional homicide with accompanying civil litigation, the attorney refuted the defendant's defense on subjective intent, voluntary surrender, and the determination of the crime through in-depth review of the case files. Ultimately, the court sentenced the defendant to death for intentional homicide - the key to the determination of the crime entirely depended on the combination and interpretation of objective evidence. The same applies to the criminal determination in enterprise operations: for the same fund transaction, clear evidence of lending indicates a loan, while the lack of such evidence may be construed as illegal fund-raising or money laundering; for the same rebate, an open rebate agreement indicates a commercial discount, while secret payments may constitute bribery. Therefore, the core method of examination is "viewing business through the lens of criminal charges": breaking down each type of business into three aspects - fund flow, contract flow, and approval flow - and checking each aspect against the constituting elements of relevant crimes. Taking financing business as an example, raising funds from unspecified social sources and making a promise of guaranteed interest payments may cross the red line of illegal public deposit-taking. The examination will focus on verifying the structure of the fund source, the promotion methods, and the interest rate commitments. For Beijing-based enterprises, it is also necessary to take into account local regulatory characteristics: frequent special governance actions in fields such as finance, education and training, and real estate. Therefore, the latest law enforcement trends in these industries should also be included in the examination.

IV. Practical suggestions and legal basis

The first step is to define the scope: Identify the physical examination targets according to business lines and departments, and collect system texts, transaction samples, and historical penalty records. The second step is risk screening: Verify each item against the constituting elements of the crime, and interview business backbones when necessary. The third step is graded reporting: Form a three-level risk list (red, yellow, and green) and a rectification roadmap. The fourth step is rectification implementation: Revise systems, adjust processes, conduct training, and establish a regular re-inspection mechanism. Main legal basis: - Relevant crimes in the special provisions of the Criminal Law of the People's Republic of China (amended in 2023); - Provisions on case filing and prosecution in the Criminal Procedure Law of the People's Republic of China (amended in 2018); - Case filing and prosecution standards for relevant crimes issued by the Supreme People's Procuratorate and the Ministry of Public Security; - Specific applications shall be subject to the currently effective laws and regulations.

5. Henglu Law Firm's Reminder

The value of the physical examination report lies in its practical application: sending the list of issues to decision-makers, assigning rectification tasks to departments, and incorporating the re-examination cycle into the system. Matters related to physical examinations and rectifications can be handled through the following channels:Intellectual property protection and corporate legal servicesAfter the entrusted launch, it was found that the existing risks need to be assessed, and the legal consequences can be combined with itCriminal legal servicesFor the sorting out of the contract system, you can refer to the following materials for reference.Business and contract disputes in enterprisesFor those involved in cross-border business, you may also want to pay attention to the following platforms\nFinancial capital and cross-border transactions involving foreign entities.Service.

VI. Frequently Asked Questions

Q1: What materials does the company need to provide for the physical examination?

These mainly include institutional documents, contract and invoice samples, approval and fund flow samples, organizational structures and authorization documents, as well as historical administrative or criminal processing records.

Q2: Will the physical examination disclose trade secrets?

In accordance with the law, the party is obliged to maintain confidentiality. A confidentiality agreement shall be signed before the entrustment, and the investigation shall be carried out within the minimum necessary scope.

Q3: Will I be reported if a problem is detected?

No. The purpose of the physical examination is to identify and resolve problems. Lawyers are legally obligated to keep confidential the information about their clients that they learn during their practice (except for cases involving major crimes that are currently being committed and pose a threat to society).

Q4: How often should I get a physical examination?

It is recommended that a special physical examination should be conducted at least once a year, and additional special physical examinations should be conducted when the business model is adjusted, new laws are promulgated, or special industry management initiatives are launched.

Q5: Can a physical examination guarantee that the company will not be held accountable?

It's not a guarantee, but it can significantly reduce the risk probability and provide a systemic basis for the unit to demonstrate its willingness to cut ties with criminal activities and implement compliant rectifications in case of criminal involvement.

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 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 Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and open 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.