China adopts law against cross-border corruption — South China Morning Post
In China, the Standing Committee of the National People's Congress adopted a law on combating cross-border corruption. The document was approved at the end of the 25th session of the committee's 14th convocation and entered into force immediately, South China Morning Post reports, citing the state-run Xinhua news agency.
Asset recovery and international cooperation
The law introduces formal mechanisms for handling cross-border cases, international cooperation and asset recovery. It creates a legal basis for tracking down economic fugitives and illegally transferred capital within the Operation Fox Hunt and Operation Sky Net campaigns.
The new provisions cover bribery outside the country, violations in the public sector and the transfer of illegal assets abroad. The law also provides for measures to block unauthorized foreign investigations on Chinese territory and allows for retaliatory measures against foreign law enforcement actions that Beijing may consider a pretext for suppressing Chinese interests.
More current news is available on the UA.News Telegram channel Telegram.
Requirements for companies
During the second reading, lawmakers clarified provisions on the use of digital tools in cross-border investigations. The text was also amended to require supervisory bodies to protect state secrets, commercial secrets and personal data obtained during inspections.
The law stipulates that the absence of a compliance system is itself a violation, even if bribery has not been established. Law firm DLA Piper noted that Article 26 prohibits companies from providing evidence or assisting foreign regulators without Beijing's explicit permission. At the same time, Article 18 requires them to cooperate with Chinese investigators.
DLA Piper also indicated that foreign executives and employees in China may be barred from leaving the country after an investigation begins. The law applies to Chinese citizens and enterprises regardless of where the actions were committed, as well as to overseas subsidiaries of Chinese enterprises.
