Asset freeze
Asset freeze
An asset freeze — blocking access to a person money and property without seizing them, usually as a sanctions or precautionary measure.
- What it is
- An asset freeze — blocking access to money and property without seizing it
- How it works
- The assets remain, but they cannot be disposed of
- Reason
- Most often sanctions against a specific person
- During checks
- Sanctions status is a serious deal-breaker
- How to use it
- Check your sanctions status in advance
In plain words
An asset freeze is a restrictive measure under which a person or company is blocked from accessing their money and property: accounts cannot be used, and assets cannot be sold, transferred or otherwise disposed of. An important nuance: a freeze is not confiscation. The assets formally remain the person’s property but become “frozen” — unavailable for transactions.
An asset freeze is most often a sanctions measure: when a person or company is placed on a sanctions list (OFAC, the EU, the UN, for example), their assets in the jurisdiction concerned are blocked, usually together with an entry ban and other restrictions. Less often a freeze is an interim measure in court or investigative proceedings. In any case it is a serious restriction on the right to dispose of property.
In investment migration and bank compliance the subject relates above all to sanctions: a person whose assets are frozen under sanctions will not be able to open an account or obtain citizenship in a reputable programme. The sanctions check in due diligence always reveals such status. We check clients’ sanctions position in advance so that such obstacles do not arise unexpectedly, and help sort out contentious situations.
Where the subject of freezes matters
What matters about an asset freeze
- Blocked access
- Cannot be disposed of
- Not confiscation
- Most often — sanctions
- Less often — a court measure
- Sanctions lists
- Accounts unavailable
- Assets cannot be sold
- Together with other measures
- Sanctions are a deal-breaker
- The check will reveal it
- Contentious cases can be sorted out
How to take this risk into account
- 01Check your sanctions status
- 02Assess whether there are restrictions
- 03Sort out contentious situations
- 04Legal work
- 05A clean status or a strategy
What you need to know
- An asset freeze blocks access without seizure
- The assets remain the person’s property but are unavailable for transactions
- It is most often a sanctions measure
- It usually comes together with an entry ban and other restrictions
- Sanctions status is a serious deal-breaker in DD
Common mistakes
- Confusing an asset freeze with confiscation
- Not checking your sanctions status in advance
- Concealing sanctions restrictions — the check will find them
- Underestimating the related measures (an entry ban)
- Applying for citizenship while under active sanctions
What this means for a BRIDGES client
We check clients’ sanctions position in advance, including the risks of an asset freeze, so that such obstacles do not arise unexpectedly in due diligence. In contentious situations and with false matches we help sort things out with legal support. That way you go into the programme with a clean and clear status.
Frequently asked questions
01 /What is an asset freeze?
A restrictive measure under which access to money and property is blocked: they cannot be disposed of. The assets remain the person’s property but become unavailable for transactions.
02 /Is it the same as confiscation?
No. With confiscation property is seized, whereas with a freeze it remains the person’s property — it is simply blocked from use. They are different measures.
03 /Why are assets frozen?
Most often it is a sanctions measure: on inclusion in a sanctions list, assets in the jurisdiction concerned are blocked. Less often it is an interim measure in court proceedings.
04 /How does it affect citizenship?
A person whose assets are frozen under sanctions will not be able to obtain citizenship in a reputable programme or open an account. Sanctions status is a serious deal-breaker.
05 /Does a freeze come with other measures?
Usually, yes: a sanctions asset freeze is often accompanied by an entry ban and other restrictions against the same person.
06 /How can you protect yourself?
Check your sanctions status in advance, before applying. We carry out such a check and, in contentious situations or with false matches, help sort things out.
See also
Read next
This material has undergone editorial review by BRIDGES.
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We will check your sanctions status and the risks of restrictions in advance — so that they do not become an unexpected obstacle when applying.