A blocked account refers to a financial account that is restricted from any transactions, such as payments, transfers, or withdrawals. This restriction applies when a designated national has an interest in the account and can only be lifted through specific authorization or licensing. It is important to note that accounts belonging to unblocked nationals are not considered blocked accounts.
Blocked accounts are often encountered in legal contexts involving sanctions and foreign asset controls. They are primarily relevant in areas such as:
Users may need to manage blocked accounts through legal forms and procedures, which can often be facilitated using templates from US Legal Forms.
Here are a couple of examples of abatement:
Example 1: An individual from a sanctioned country holds a bank account in the U.S. This account is blocked, preventing any withdrawals or transfers until the individual receives a specific license from the Office of Foreign Assets Control (OFAC).
Example 2: A company that has been designated for sanctions cannot access its funds in a U.S. bank because the account is blocked until further notice from the authorities. (hypothetical example)
The primary regulation governing blocked accounts is found in the U.S. Treasury's Office of Foreign Assets Control (OFAC) regulations, specifically:
| Term | Definition | Difference |
|---|---|---|
| Blocked Account | An account restricted from transactions due to sanctions. | Specifically relates to accounts of designated nationals. |
| Frozen Account | An account where access to funds is restricted, often due to legal actions. | Can apply to various legal situations, not just sanctions. |
| Unblocked Account | An account that is not subject to restrictions. | Allows full access to funds and transactions. |
If you find yourself dealing with a blocked account, consider the following steps:
Browse our library of 85,000+ state-specific legal templates.
| Attribute | Details |
|---|---|
| Typical Fees | Varies by financial institution. |
| Jurisdiction | U.S. federal law applies. |
| Possible Penalties | Fines for unauthorized transactions. |
A blocked account is a financial account that cannot be accessed or used for transactions due to restrictions imposed by the government.