Asset Freeze

When a person or entity is added to a sanctions list, firms holding their money or property must stop all dealings with it. Accounts stay open but nothing can be paid out, and assets cannot be sold, lent or used as security without permission from the authority. The ban normally extends to assets owned or controlled by the listed party, and to making funds or services available to them. Firms report what they hold to the authority. Freezes are meant to be temporary and can be eased through licences, for example to pay legal fees or basic living costs. Failure to apply a freeze is a serious offence in many countries. Because it takes effect at once, a freeze can stop funds leaving before the owner has time to react.

A brokerage receives a notice that a client has been added to a national sanctions list. Within hours it blocks all outgoing payments on the client's cash and securities accounts, and checks for accounts held through companies the person controls. It reports the amounts held to the authority and refuses a transfer request the next day.