Law system

Crimson Desert has a law system that tracks criminal behavior across Pywel's towns and cities. Harmful actions toward residents and their property have real consequences, ranging from fines to imprisonment.
Criminal actions
The following actions are recognized as crimes:
Pickpocketing residents
Stealing items from vendors or homes (even something as small as a piece of fruit)
Attacking or bullying civilians
Causing general damage in populated areas
Bounty system

Committing a crime places a bounty on Kliff's head. A wanted poster appears on screen showing your face and the current bounty amount. Repeated offenses raise the bounty, making guards and residents more aggressive toward you.
With a high enough bounty, an entire town can turn hostile. Both civilians and guards will refuse to deal with you, and guards will actively try to arrest or fight you. The number of guards that respond is deliberately overwhelming, so fighting your way out is hard without serious preparation.
Consequences
Fines - you can pay off your bounty to clear your wanted status. The amount depends on the severity of your crimes
Imprisonment - if guards take you down, Kliff can end up in jail. You'll serve time in a wooden holding cell before being released
Hostile NPCs - while wanted, residents and guards throughout the affected area become hostile, making travel and commerce difficult
Regional reputation - crimes cause your regional contributions to drop, which can affect vendor prices, NPC willingness to interact with you, and access to certain services
Clearing your name
The simplest way to deal with a bounty is to pay the fine. If you can't afford it, you may need to leave the area and return later once things cool down. Being arrested and serving jail time also clears the bounty, though you lose time in the process.
Tips
Save before experimenting with crime. The consequences are real and can lock you out of vendor access in a town you need.
Guards are numerous and tough. Trying to fight your way out of a wanted situation is rarely worth it.
The regional reputation hit from crimes affects more than just guard behavior. Vendor prices and quest availability can also change.
If you accidentally commit a crime, paying the fine immediately is usually the cheapest option before the bounty escalates.