2024.05.16
Since 2023, JunHe’s compliance rectification team has been assisting an enterprise suspected of money laundering in Shanghai. Recently, the enterprise was declared to be in compliance and a People's Procuratorate of Guangdong Province decided not to prosecute the enterprise and its principal officers. This is a rare case of obtaining the non-prosecution of an enterprise through successful cross-regional compliance rectification.
The company is a leading high-tech enterprise in the field of big data application and big data infrastructure. From 2018 to 2021, in order to maintain customer relations, it accepted the instructions of a senior executive of a state-owned enterprise and adopted a method of fictitious transactions to assist the executive in transferring embezzlement proceeds. In July 2022, upon evidence from the Supervisory Commission, the Guangdong police filed a criminal case for suspected money laundering against the principal officers and the project supervisor of the company and implemented pre-trial measures, including detention and arrest. In February 2023, the case was transferred to the procuratorial authorities for review and prosecution. The company involved in the case requested non-prosecution through compliance rectification and engaged JunHe’s Shanghai office to undertake the work.
JunHe’s team submitted a customized compliance rectification plan to the authorities. In September 2023, the Procuratorate served the Decision on Enterprise Compliance Supervision and Inspection to the client, selecting third-party supervisors to supervise and manage the compliance rectification work for three months. Given the tight schedule and according to the regulatory documents and the inspection requirements of the procuratorate and the third-party supervisors, JunHe investigated the causes of the crime, examined and remedied any deficiencies, developed a specific plan and assisted the company to implement it. This included the establishment of a compliance management organizational system, the establishment of a compliance policy system, the implementation of compliance systems and measures, the development of a compliance culture, and testing the effectiveness of the compliance rectification. JunHe carried out meticulous work in building rectification teams, reviewed and revised institutional documents, conducted employee interviews and staff legal training and maintained work accounts. JunHe communicated with the enterprise involved in the case, the third-party supervisors and the procuratorate who were all located in different areas. They coordinated with all parties to help the enterprise overcome difficulties in the rectification process and successfully pass the mid-term evaluation and the inspection & acceptance hearing. Recently, the procuratorial authorities announced that the company had obtained compliance through rectification, and they had decided not to prosecute the enterprise and the principal officers according to the law.
JunHe pays close attention to the latest developments in the criminal justice system. We apply a variety of solutions, including third-party mechanisms, to assist clients in resolving criminal risks and provide strong support for a company's restoration to healthy operations. The team's expertise, good communication skills and rigorous work attitude in this case were highly praised by the client and all parties.
The lead partner in this case was Mr. WU, Lei , and the acting partner was Mr. ZHENG Yu. Mr. NI, Tianling (Carey Nee) also provided strong support in the case.
