Cross-Border Asset Tracing for Domestic Criminal Restitution Enforcement
Cross-border criminal restitution requires converting domestic penal orders into foreign civil judgments or leveraging multilateral conventions to freeze offshore funds.
Article 64 Criminal Law
Meaning
Statutory provisions in Chinese criminal law mandate the recovery and return of all property illegally obtained by criminal defendants to their rightful victims, or the confiscation of such property for state coffers. Under article 64 criminal law, all contraband, tools used in the commission of a crime, and illegal gains must be systematically traced, seized, and processed by the judicial authorities. This mandate stops applying to legitimate private property that has no connection to the criminal offense, has not been commingled with the proceeds of crime, and belongs to an innocent third party who acquired it in good faith for reasonable value.
Restitution Priority
Judicial authorities must prioritize the restitution of property to victims before executing any confiscation or fine on behalf of the state treasury. Under article 64 criminal law, where a defendant has defrauded a business partner or a foreign investor, the recovered funds must be returned to the victim first. This restitution priority protects the civil rights of victims and ensures that the state does not profit from crime at the expense of innocent private parties.
Confiscation Mandate
State organs hold the authority to seize any assets that represent the direct or indirect yields of a criminal enterprise. This authority applies to bank accounts, real estate, and equity shares that were purchased or maintained using the proceeds of crime. Under article 64 criminal law, the court will order the confiscation of these assets if the victim cannot be identified or if the property consists of illicit tools used for the offense.
Enforcement Standard
Practical execution of these orders requires close coordination between the public security bureau, the procuratorate, and the people’s courts during the investigation and trial phases. Investigators must document the causal link between the criminal act and the seized asset to satisfy the high standard of proof required by the court. If the tracing chain is broken, the court cannot order confiscation, and the property must be released to its owner.