Blocked property definition

Blocked property must be reported to the authority, typically within ten business days of blocking and annually thereafter, and it may not be dealt with without a licence. The holder does not take title and the underlying obligation is not extinguished.

The aggregate of blocked property reports is one of the few quantitative measures of sanctions in operation, and it is published.

Where this term is used

How is correspondent banking used to evade sanctions? — Using a chain of banks that each know only their own customer, so that a payment for a restricted party reaches a currency it could not access directly, without any bank in the chain seeing the whole transaction.
What is ownership threshold structuring? — Arranging shareholdings so that designated parties own less than the percentage at which ownership is automatically attributed, while control of the entity stays where it was.
What are third-country bank accounts and how are they used? — Holding accounts in a jurisdiction unconnected to the restricted party, the goods or the contract, so that payments reach and leave the restricted economy without ever appearing to touch it.

Related terms

Blocking — Freezing property and interests in property of a designated person that come within a jurisdiction, so it cannot be transferred, paid, withdrawn or otherwise dealt in.
Asset freeze — The prohibition on dealing with funds or economic resources owned, held or controlled by a designated person, and on making funds available to them.
General licence — A published authorisation permitting a defined category of otherwise prohibited transactions, available to anyone who meets its terms without applying.

Where this term is used

Related terms

Sources