Draft law requires firms to strengthen cross-border compliance

Chinese enterprises involved in cross-border operations are required to establish a dedicated clean-compliance department or appoint specific personnel to handle these responsibilities, according to a draft law currently under review by Chinese lawmakers.

The draft law against cross-border corruption was submitted on Monday to the ongoing session of the Standing Committee of the National People's Congress, China's top legislative body, for further consideration. An initial review of the draft took place in August.

The latest version of the draft mandates that domestic companies engaged in international business must incorporate clean compliance management throughout their operations, including decision-making and supervision. When setting up a department or appointing personnel for clean governance, companies should consider factors such as their size, business scope, and risk management strategies.

Furthermore, the draft includes a provision requiring relevant authorities and their staff to maintain confidentiality regarding any state secrets, work secrets, trade secrets, personal data, and privacy encountered during supervision and investigations.