Chapter VI Seizure, Impoundment and Freezing of Property Involved in a Case

Section 1 Requesting a Foreign State to Seize, Impound or Freeze Property Involved in a Case

Article 39 Where the organ handling a case needs assistance from a foreign state to seize, impound or freeze property involved in the case, it shall prepare a written request for mutual legal assistance in criminal matters with relevant materials attached, which shall, after being examined and approved by the competent authority to which it is subordinate, be filed with the foreign state by foreign liaison authorities in a timely manner.

Where a foreign state has raised a special requirement for execution of the request made by the People's Republic of China for assistance in seizing, impounding or freezing property involved in a case, such requirement may be approved provided that it is not against basic principles of laws of the People's Republic of China. Where the relevant decision needs to be made by the judicial authority, it shall be the people's court to make such decision.

Article 40 Where a request is made to a foreign state to seize, impound or freeze property involved in a case, the written request and attached materials shall indicate the following, when necessary:

 (1) Proof of ownership, name, characteristics, appearance, quantity and other information of the property involved in the case that is requested to be seized, impounded or frozen;

 (2) Location of the property involved in a case that is requested to be seized, impounded or frozen. For funds or other financial assets deposited in a financial institution, name and address of the said financial institution and account information shall be specified;

 (3) A duplicate of relevant legal documents;

 (4) Legal provisions on seizure, impoundment and freezing and protection of rights of parties of interest; and

 (5) Other materials that can help with execution of the request.

Article 41 Where a foreign state's continued seizure, impoundment or freezing of the relevant property involved in a case is necessary after the period determined by the foreign state expires, the organ handling the case shall make a new request.

Where the organ handling the case decides to remove the seizure, impoundment or freezing, it shall notify the requested state in a timely manner.

Section 2 Requesting the People's Republic of China to Seize, Impound or Freeze Property Involved in a Case

Article 42 A foreign state may request the People's Republic of China to assist in seizing, impounding or freezing property involved in a case which is located within the territory of the People's Republic of China.

Where a foreign state requests the People's Republic of China to seize, impound or freeze property involved in a case, the written request and attached materials shall indicate items specified in Article 40 of this Law, where necessary.

Article 43 Where the competent authority deems upon examination that the following conditions are met, it may approve the seizure, impoundment or freezing requested, and arrange for execution by the relevant organ:

 (1) The seizure, impoundment or freezing requested meets the conditions prescribed in laws of the People's Republic of China;

 (2) The seizure, impoundment or freezing requested is relevant to inspection, investigation, prosecution or trial of a criminal case being proceeded in the requesting state;

 (3) The property in relation to which a request has been made can be seized, impounded or frozen;

 (4) Execution of the request would not be detrimental to the lawful rights and interests of a party of interest; and

 (5) Execution of the request would not affect an on-going inspection, investigation, prosecution, trial or execution by an authority in the People's Republic of China.

The organ handling the case shall, through the competent authority and in a timely manner, notify the foreign liaison authorities of the result of the requested seizure, impoundment or freezing, who shall then inform the requesting state. Where necessary, the organ handling the case may, in accordance with law, take measures to dispose of the seized, impounded or frozen property.

Article 44 Where a foreign state deems it necessary to continue seizing, impounding or freezing the relevant property after the determined period of seizure, impoundment or freezing, it shall make a new request to the foreign liaison authorities.

Where the foreign state decides to remove the seizure, impoundment or freezing requested, the foreign liaison authorities shall, through the competent authority, notify the organ handling the case of such decision and to remove accordingly in a timely manner.　

Article 45 Where a party of interest holds objection to the seizure, impoundment or freezing to be executed, and the organ handling the case deems upon examination that the seizure, impoundment or freezing requested does not meet the conditions prescribed in Paragraph 1 of Article 43 of this Law, it shall submit a request to the competent authority to remove such seizure, impoundment or freezing. It shall be for the competent authority to decide on the said request and, if granted, notify the foreign liaison authorities, who shall then inform the requesting state. Where objection is raised on handling of the relevant case, the organ handling the case may, through the competent authority to which it is subordinate, forward it to the foreign liaison authorities, who shall then raise it to the requesting state.

Article 46 Where the lawful rights and interests of a party of interest have been impaired as a result of inappropriate seizure, impoundment or freezing caused by the requesting state, the organ handling the case may, through the foreign liaison entities, demand the requesting state to assume the liability of compensation.

Chapter VII Confiscation and Return of Proceeds of Crime and Other Property Involved in a Case

Section 1 Requesting a Foreign State to Confiscate or Return Proceeds of Crime and Other Property Involved in a Case

Article 47 Where the organ handling a case needs assistance from a foreign state to confiscate proceeds of crime and other property involved in a case, it shall prepare a written request for mutual legal assistance in criminal matters with relevant materials attached, which shall, after being examined and approved by the competent authority to which it is subordinate, be filed with the foreign state by foreign liaison authorities in a timely manner.

A request for a foreign state returning the proceeds of crime and other property involved in a case to the People's Republic of China or the victim(s) of the case may be made along with the request for confiscation or separately.

Where a foreign state has raised a special requirement for returning the proceeds of crime and other property involved in a case that has been seized, impounded or frozen as requested, such requirement may be approved provided that it is not against basic principles of laws of the People's Republic of China. Where the relevant decision needs to be made by the judicial authority, it shall be the people's court to make such decision.

Article 48 Where a request is made to a foreign state to confiscate or return proceeds of crime and other property involved in a case, the written request and attached materials shall indicate the following, where necessary:

 (1) Name, characteristics, appearance, quantity and other information of the proceeds of crime and other property involved in the case that is requested to be confiscated or returned;

 (2) Location of the proceeds of crime and other property involved in the case that is requested to be confiscated or returned. For funds or other financial assets deposited in a financial institution, name and address of the said financial institution and account information shall be specified;

 (3) Grounds for confiscation or return and the relevant proof of ownership;

 (4) A duplicate of relevant legal documents;

 (5) Legal provisions on confiscation and return and protection of rights of parties of interest; and

 (6) Other materials that can help with execution of the request.

Article 49 Where a foreign state assists in the confiscation or return of proceeds of crime and other property involved in a case as requested, it shall be for the foreign liaison authorities to, in conjunction with the competent authority, negotiate with the foreign state on  transfer of the relevant property.

Where a foreign state requested to assist in confiscating or returning proceeds of crime and other property involved in a case demands a share therein, it shall be for the foreign liaison authorities, in conjunction with the competent authority, to negotiate with the foreign state to determine on the amount or proportion.

Section 2 Requesting the People's Republic of China to Confiscate or Return Proceeds of Crime and Other Property Involved in a Case

Article 50 A foreign state may request the People's Republic of China to assist in confiscating or returning proceeds of crime and other property involved in a case.

Where a foreign state requests the People's Republic of China to assist in confiscating or returning proceeds of crime and other property involved in a case, the written request and attached materials shall indicate items specified in Article 48 of this Law, where necessary.　　

Article 51 Where the competent authority deems upon examination that the following conditions are met, it may approve the requested assistance in confiscating proceeds of crime and other property involved in a case, and arrange for execution by the relevant organ：

 (1) The requested confiscation of proceeds of crime and other property involved in a case meets the conditions prescribed in laws of the People's Republic of China;

 (2) Relevant rights of parties of interest are under full protection by the foreign state;

 (3) Property is available in the People's Republic of China for execution;

 (4) The written request and attached materials make a detailed description of the ownership, name, characteristics, appearance, quantity and other information of the property in relation to which the request is made;

 (5) The confiscation requested cannot be executed or fully executed in the requesting state; and

 (6) Other conditions that shall be met in the opinion of the competent authority.

Article 52 A request made by a foreign state for assistance in confiscating proceeds of crime and other property involved in a case may be refused under any of the following circumstances, about which reasons shall be explained:

 (1) Judicial authority of the People's Republic of China or a third state has rendered an effective judgment on the property in relation to which a request has been made, and the judgment has been or is being executed;

 (2) The property in relation to which a request has been made does not exist, is damaged, lost, sold or transferred, which makes it impossible to execute the request, except where the request is for confiscation of the property sold or transferred;

 (3) The person in relation to which a request has been made still has outstanding debt or is involved in a pending lawsuit within the territory of the People's Republic of China; and

 (4) Any other circumstances under which a request may be refused.

Article 53 Where a foreign state requests the return of proceeds of crime and other property involved in a case and has provided reliable and sufficient evidence, the competent authority may approve such request and arrange for execution by the relevant organ if it deems upon examination that the conditions prescribed in laws of the People's Republic of China are met. Prior to the return, the organ handling the case may deduct a reasonable amount of expenses incurred from executing the request.

Article 54 Where a foreign state requests assistance in confiscating or returning proceeds of crime and other property involved in a case, the foreign liaison authorities may, in conjunction with the competent authority, demand a share therein. It shall be for the foreign liaison authorities, in conjunction with the competent authority, to negotiate with the foreign state to determine on the exact amount or proportion.