The new law entrusts supervision commissions to oversee individuals across public sector entities including party organs, legislatures, governments, courts, procuratorates, political advisory bodies, as well as their own staff, executives of state-owned enterprises, management staff of public institutions and mass organizations (collectively referred as “Officials“).
We expect to see increased scrutiny and enforcement in the near future. Whilst the new law targets Officials with public responsibilities, parties doing business in China, including foreign companies, are also at increased risk of being implicated if their business falls within the investigation conducted under the Supervision Law. Specifically, the New Commission can detain individuals who commit official bribery or who jointly commit the crime of misconduct in office pursuant to the Supervision Law. Such individuals can include those from the private sector.
Investigators now have increased investigation and surveillance powers such as wiretapping, when they are investigating severe violations. Of interest is that the new law does not expressly restrict the target of such measures to Officials.
The new law also clearly requires the New Commission to be responsible for global assistance and information exchange in relation to anti-corruption enforcement. It envisages cooperation between the New Commission and foreign law enforcement bodies, such as the US Department of Justice and the UK’s Serious Fraud Office.