How to prepare for raids in China and Hong Kong
September 24, 2015 | BY
clpstaffCompanies faced with corruption investigations by PRC and Hong Kong authorities must understand how the agencies work and prepare and respond effectively in order to minimize disruption, liability and other costly risks
The PRC's anti-corruption drive continues apace, with the Supreme People's Procuratorate (SPP) reporting that a total of 7,827 individual bribe givers were prosecuted in 2014, an increase of 37.9% from 2013. This trend has continued in 2015, with the SPP opening cases to investigate a further 1,891 individuals for suspected bribery in the first three months of the year. The Chinese authorities have also clearly signaled, in particular with their investigation and conviction of GlaxoSmithKline and certain associated companies, that they are willing to target their enforcement activities on companies with foreign ownership.
As a result, companies with operations in the PRC and Hong Kong are now faced with active anti-corruption authorities in both jurisdictions, which have broad investigative powers, including powers to conduct searches of premises (raids), compel the production of information and arrest and detain suspects.
China
Key investigative agencies
A number of PRC agencies are empowered to investigate alleged breaches of the PRC's anti-corruption laws. There is some overlap in the various agencies' jurisdictions, and it is not unusual for agencies to conduct joint investigations, including “raids”.
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now