Dear Professor Tian Wenchang, Dear Professor Liu Guiming, and fellow teachers—hello everyone! My topic today is: "From Criminal Defense to Criminal Compliance." In fact, I’ll be exploring how criminal defense naturally extends into the realm of criminal compliance. I’ve deliberately left out the final few words in the title—it’s meant to leave you curious, because some might view this shift as a complete business transformation. But in reality, it’s more accurately described as an extension of my existing expertise.

Just now, everyone talked about criminal defense—about the passion and dedication that come with it. I’d like to borrow a well-known quote from Professor Tian to reflect on this issue: "Criminal defense is the most sophisticated of all legal specialties." Many people assume that my decision to leave Dacheng’s criminal defense practice was simply a career shift—to focus exclusively on compliance instead. And frankly, this isn’t an unusual thought; in recent years, we’ve seen this pattern quite frequently. Lawyers who’ve built solid reputations in criminal defense often pivot to non-litigation work when market conditions become challenging. But then, once compliance roles start offering more lucrative opportunities—or perhaps when criminal defense fees rebound—they inevitably return to their roots in criminal advocacy. That’s not how we see it. In my view, criminal compliance is essentially an extension of criminal defense, albeit one that expands into new areas of practice. In fact, much of what compliance now entails has already been familiar territory for many of us as criminal defense lawyers—such as proactive measures to prevent criminal risks, as well as certain non-litigation criminal law services. After all, criminal compliance ultimately represents the natural evolution and ultimate goal of our expertise as criminal defense professionals.

Next, I'll address three issues:

Should criminal defense lawyers expand into the compliance field?

Starting with my own experience, I spent a long time leading Dacheng Criminal Defense alongside my colleagues, successfully fostering the innovation and cohesion that our esteemed teachers discussed this morning. By "innovation," I mean breaking free from conventional practices—staying attuned to market demands while simultaneously carving out your own unique identity. And by "cohesion," I refer not only to shared culture and passion but also to tangible and intangible benefits that serve as powerful connecting threads. However, toward the end of last year, I began to feel like we’d hit a ceiling—reaching a point where further innovation seemed increasingly challenging. Despite this, Dacheng Criminal Defense has made significant strides: we’ve established independently named courses at five of the most prestigious law schools across the country. For instance, at Peking University, the course is aptly titled "Peking University · Dacheng Financial Crime Lecture Series," and similar programs have been launched at Tsinghua University, China University of Political Science and Law, Beijing Normal University, and Renmin University of China. Meanwhile, our nationwide touring lecture model has already gained widespread recognition—and as far as we know, we’re the first law firm to adopt this approach within lawyer and criminal defense academies. Moreover, through ongoing exchanges with peers in the industry, we’ve deepened our collaborative efforts, engaging in more frequent discussions and mutual learning. As a result, the exchange of both theoretical insights and practical expertise in criminal defense has actually reached a remarkably mature stage.

From a criminal law perspective, in recent years—especially since the establishment of the National Supervisory Commission and with the "anti-corruption sweep" campaigns launched a few years ago—smaller cases have largely been covered by the plea-bargaining system that offers leniency upon guilty pleas. Meanwhile, larger cases have faced increasing restrictions, leading to a noticeable bottleneck in criminal defense practice. Just as I was pondering how to adapt and innovate, the compliance sector began to gain momentum—so much so that even prosecutors' offices are now actively involved. This made me realize that compliance services represent a rapidly growing, soon-to-explode business area—particularly if legislation allowing conditional non-prosecution is eventually approved. These emerging shifts have given me the inspiration and drive to think creatively—and that’s exactly why I decided to take this bold step. But why not pursue this opportunity earlier? Because it requires an entirely independent operational framework within an entire organization, along with collaboration from other specialized fields and the development of entirely new, innovative models. It’s simply beyond the scope of what a single professional team could accomplish on its own. That’s why we established our own law firm at the end of last year, and we officially opened for business just this past March. As for management—I’ll be honest, I’m not exactly the organizational type. In fact, I’m pretty laid-back and free-spirited. Fortunately, managing the day-to-day operations will be handled by Director Wang Jun, who delivered the keynote speech last night.

2. Are criminal defense lawyers like us suitable for expansion?

Since the pilot program for corporate compliance reform initiated by the procuratorial authorities, we’ve observed that compliance initiatives currently focus primarily on formal compliance programs and procedural frameworks. Serving this growing area are mostly non-criminal defense lawyers—often even attorneys specializing in non-litigation matters. This is because they’ve had earlier exposure to ISO compliance documents and domestic standard guidelines, making them well-versed in both international and local regulations. Additionally, these lawyers already have practical experience and case studies from their work in comprehensive corporate compliance projects, allowing them to build up valuable expertise in this field. As a result, when this unexpected wave of business opportunities emerged, criminal defense lawyers like us were largely unprepared. After all, most of us have historically focused almost exclusively on criminal defense practice, leaving us relatively unfamiliar with compliance-related knowledge and skills. Consequently, while criminal defense attorneys have been slow to enter this arena, non-litigation specialists remain the dominant players in this space.

However, at the heart of corporate compliance initiatives promoted by the procuratorate lies criminal compliance—specifically, adhering to criminal law standards as the ultimate benchmark. After addressing formalities and procedural requirements, the real challenge shifts to identifying and assessing a company’s criminal risks, as well as developing strategies to mitigate or eliminate those risks. This process ultimately calls on criminal defense lawyers, whose expertise is indispensable in navigating both the nuanced elements of criminal offenses and the ever-evolving landscape of criminal justice practices. Of course, we acknowledge that there may be a transitional phase during which this approach takes shape—a natural and understandable transition. Yet, it’s crucial to keep things distinct: corporate compliance rooted in individual crime assessment and targeted remediation efforts is not something non-litigation or non-criminal-defense lawyers can fully address on their own. Instead, it demands close collaboration among all stakeholders, with deep involvement from seasoned criminal defense attorneys who bring the necessary legal insight and strategic acumen to the table.

3. How can we criminal defense lawyers effectively handle criminal compliance while excelling in our criminal defense work?

We at Xinglai proudly claim to be the first law firm that specifically focuses on corporate compliance services. However, when it comes to the emerging field of criminal compliance, we’re actively exploring both operational models and content—especially now that the procuratorial system has rolled out its second batch of pilot programs nationwide, with nearly 200 organizations already participating. Yet even in this area, we’re still in the process of figuring things out. For now, Xinglai Law Firm has distilled three key insights, which we’d like to share with everyone.

First, criminal defense lawyers should immediately start building their knowledge of compliance, including participating in specialized training and engaging in relevant discussions.

Second, we need to adjust our mindset. We shouldn’t consistently approach compliance work through the lens of criminal defense—it’s crucial not to view compliance solely from the perspective of a typical in-house counsel or traditional criminal risk management either. For instance, compliance is no longer just about safeguarding an individual entrepreneur; instead, it’s about protecting the entire organization as a whole. It’s no longer sufficient for entrepreneurs alone to simply avoid personal risks. Similarly, compliance isn’t merely about helping companies sidestep risks associated with behavior that poses real harm—though those are certainly important considerations too. Criminal defense lawyers, however, excel at using their expertise in defending cases to work backward: identifying how a crime actually took shape, pinpointing its key risk areas, and figuring out precisely how to address and mitigate those vulnerabilities down to the smallest details. That’s precisely where our unique strength lies.

Third, methodologically speaking, it’s important to carefully consider the combination of different specialties, examine the distinctions between pre-incident compliance and post-incident compliance, and seamlessly integrate compliance efforts with defense strategies.

On one hand, Xinglai has recruited a number of experienced lawyers with extensive compliance expertise, collaborating across various specialties to explore innovative pathways for corporate compliance. On the other hand, we’re continuing to develop our compliance products—currently in version 2.0, which will be launched very soon. This version will serve as our central framework and key tool to guide and streamline business operations. We sincerely hope that our industry peers will join forces, working together as a collaborative network to deliver top-notch compliance services. By doing so, we can contribute to the healthy growth of businesses and strengthen the rule of law in our country. Thank you all!