A Chinese-born citizen of New Zealand whom Beijing had accused of large-scale corruption was sentenced by a New Zealand court in a money-laundering case jointly probed by both countries.

An Auckland court on Wednesday sentenced William Yan—also known as Bill Liu, Yang Liu and Yong Ming Yan—to serve five months home detention in his luxury penthouse. The judge rejected a maximum seven-year sentence after Mr. Yan said the amount of money he laundered was small enough not to amount to a major crime.

...