Officials hail forfeiture of assets valued at $31 million

The forfeiture of assets worth $31 million from a Chinese-born economic crime fugitive in New Zealand is a primary achievement in cooperation between police in the two countries, Chinese officials said on Wednesday.

Beijing will make further efforts to bring the suspect back to China, the officials added.

The New Zealand High Court had approved the end of a money laundering investigation into Yan Yongming, a former Chinese pharmaceutical executive, and ordered assets totaling NZ$43 million ($31 million) to be forfeited, New Zealand Police said in a statement on Tuesday.

“This is the single largest forfeiture that has occurred in New Zealand to date and is the first that relates to crimes alleged to have occurred in China,” the statement said.

Yan, who is now a New Zealand citizen under the name of William Yan, is the former chairman of Tonghua Jinma Pharmaceutical Group in Jilin province. He fled to New Zealand in November 2001 after being accused of embezzlement.

In 2005, Interpol issued a red notice on Yan, and last year China placed him fifth on its 100-most-wanted fugitive list.

Lu Kang, spokesman for the Chinese Ministry of Foreign Affairs, said on Wednesday: “Chinese police have been cooperating closely with their New Zealand counterparts in hunting Yan and confiscating his illegal gains in recent years. Forfeiture of his fortune is a primary achievement.”

The two countries would continue to push forward law enforcement cooperation in Yan’s case, Lu said.

The settlement follows a complex three-year investigation into Yan that focused on laundering large sums of funds reportedly amassed from a series of frauds allegedly perpetrated in China between 1999 and 2001, the New Zealand Police statement said.

Police said they would end the investigation and release Yan’s seized property once he handed the money over. The recovered money will be shared between the New Zealand and Chinese governments, the statement added.

Yan agreed to pay the money but denied any wrongdoing. He was never charged in New Zealand with moneylaundering, Agence FrancePresse reported.

It remains to be seen if Yan can be returned to China.

An official at the Chinese Ministry of Justice, who is familiar with the case but declined to be named, said China had requested an extradition treaty with New Zealand, but this might take a long time to be realized.

But the official said Yan has said he intends to turn himself in to Chinese judicial authorities, and “he is being persuaded to return home”.

Huang Feng, a law professor at Beijing Normal University who specializes in repatriation and extradition, said Yan’s settlement means the money-laundering case he was allegedly

It’s very difficult for China to bring him (Yan) back.” Ruan Chuansheng, a Shanghai lawyer

involved in has ended. Whether he can be returned to China will depend on efforts made by the two countries.

Ruan Chuansheng, a Shanghai lawyer who is familiar with international criminal law, said repatriating Yan to China would be very difficult, as he became a New Zealand citizen in 2008.

“Yan’s case has been ended. It’s very difficult for China to bring him back — only if he surrenders,” Ruan said.

By the end of July, 33 of the 100 Chinese fugitives on the most-wanted list had been returned, according to official data.