In landmark ruling, Vancouver homebuyer is ordered to repay millions to China’s Citic Bank

China’s Citic Bank has won a landmark ruling in a Canadian court, which ordered a mainland national to comply with a Chinese judgment and repay the bank RMB50 million (US$ 7.3 million), plus interest, that the bank says was spent in part on real estate in Vancouver.

The rare ruling could open the “floodgates” for the pursuit of illicit Chinese funds in Canada on the basis of mainland rulings, according to an anti-money-laundering expert involved in the case on Citic’s behalf.

But the defendant, Yan Shibiao, could still profit even if he complies with the judgment, since the interest component of the ruling could be exceeded by the increased value of his property in Vancouver, where prices have soared in recent years.

Yan, a Shijiazhuang businessman who the bank said fled to Canada with his family after taking out a RMB50 million loan in 2014, was ordered on Tuesday by the Supreme Court of British Columbia to comply with a ruling by the Shijiazhuang Arbitration Committee in the bank’s favour.

Madam Justice Shelly Fitzpatrick ruled Yan must repay the full amount of the loan, now worth C$9.6 million, plus interest of RMB 2.17 million and costs, under the terms of the arbitration committee’s March 2016 decision.