AC-2025-LON-002199 - [2025] EWHC 2057 (Admin)

The Respondents, Cheng Xing and Yan Zhang, are Chinese nationals. They are married and have two young children. Both are currently 42 years of age. They own and reside at 26 The Holdings (“Asset 1”). They also own a leasehold flat at 27 Meadow Croft (“Asset 2”) and a freehold property at 6 Goldings Crescent (“Asset 3”). Mr Xing opened an HBOS savings account in March 2024 (“Asset 4”), which currently holds approximately £132,890.00. Assets 3 and 4 were identified following the grant of a Disclosure Order.

The Applicant submits that there is a good arguable case that the three properties and the bank account balance constitute recoverable property. This submission is advanced on the basis that the property was, it can be inferred on the evidence, purchased with the proceeds of money laundering offences, contrary to sections 327, 328, and 329 of POCA 2002, or alternatively, offences committed by acting as an unregistered Money Services Business (“MSB”) in contravention of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), or the Money Laundering Regulations 2007 prior to 26 June 2017. It is submitted that the assets were acquired through cash and monetary transfers that cannot be traced to legitimate earnings. The Respondents are alleged to be involved in Chinese Underground Banking and “Daigou” transfers to launder funds, the source of which is unknown, but where the manner of movement of funds implies unlawful conduct.

A civil recovery investigation, initiated by the Applicant, led to a Disclosure Order under section 357 of POCA, granted by Mrs Justice Lang on 17 July 2024. This order facilitated the discovery of Assets 3 and 4, as well as financial records from 2018 onwards. This additional information, it is submitted, strengthens a good arguable case that the properties and bank account are recoverable property.