What Are Blocked Assets?
When sanctions are imposed by state or international bodies, one of the most tangible tools of influence becomes the freezing of assets. Companies and individuals in such a situation find themselves effectively cut off from their financial resources, losing control over funds, securities, and other property.
If you are facing asset freezing or have already encountered this issue, our company is ready to provide comprehensive support. Our specialists will assess the legality of the asset freeze, prepare a well-reasoned strategy for unfreezing, and help establish an internal compliance system to avoid new sanction claims. We will handle all legal aspects, freeing you from unnecessary hassle and guaranteeing professional protection of your rights.
What happens to a person’s money, property, and bank accounts if they are frozen?
Asset blocking is a legal or administrative measure in which owners lose the right to manage property (money, accounts, securities, real estate, etc.). Ownership rights are retained, but the ability to perform any transactions (sale, transfer of funds, cash withdrawal, collateral) is suspended or prohibited until further notice.
The following categories of assets may be subject to blocking:
- Bank accounts (checking, deposit, brokerage accounts).
- Cash (less commonly, but may imply a ban on their movement in the official field).
- Property rights to real estate, transportation, shares in business, securities.
- Assets in cryptocurrency (if tracking tools are available and jurisdictionally possible).
Banks, brokerage companies, and payment systems, upon receiving an order from the regulator, are required to block the associated accounts. The account holder receives a notification that all transactions are suspended or declined. In the case of a freezing order, registration authorities indicate that the object is “under prohibition of alienation.” Any transactions become invalid until the blockage is lifted.
In the event of being included in sanction lists (SDN List, Consolidated List, etc.), assets under the jurisdiction of the respective country are frozen. This may be caused by accusations of supporting terrorism, money laundering, corruption, or cooperation with sanctioned regimes. In the context of legal disputes, criminal fraud cases, or corruption, if there is a risk of asset withdrawal, the court may impose a freeze to secure a claim or judgment. Freezing is also possible in cases of significant debts, tax evasion, or suspicion of illegal origin of funds.
Our law firm has expertise in the field of sanctions, AML legislation, and asset freezing. We are ready to help clients understand the basis of the blockage, prepare a defense, submit the necessary applications, and make every effort to help you regain control over your assets as quickly as possible.
Can subpoenas, investigations, or violations by OFAC affect a person’s immigration status?
Economic sanctions by OFAC affect not only international trade and financial operations. Any suspicions or accusations of violating restrictions can impact various aspects of life, including a person’s immigration status in the USA.
The Department of Homeland Security (DHS), U.S. Citizenship and Immigration Services (USCIS), and Immigration and Customs Enforcement (ICE) work closely with other agencies, including the Department of the Treasury and the Department of Justice (DOJ), in investigations related to national security, terrorism, and money laundering. Information about suspicions or violations of OFAC sanctions may be provided to immigration authorities, leading to additional checks during the review of visa, green card, or citizenship applications.
Consular officers, when reviewing a visa application, analyze all available information about the applicant, including potential financial violations, involvement with sanctioned individuals, and inclusion in SDN sanctions lists. If there are serious grounds to believe that the person is involved in sanction-violating illegal schemes, a visa denial on the grounds of “inadmissibility” is likely.
If a person is already in the United States and is trying to extend or change their status, information about investigations or accusations of violating OFAC sanctions may lead to additional checks, delays, and even denial. USCIS may deny the issuance of a green card or naturalization if it determines that the applicant was involved in criminal acts related to sanctions evasion.
In particularly severe cases, a foreigner may be deemed deportable. Immigration Court takes into account the presence of convictions and the seriousness of the charges.
If you have learned about an investigation against your company or received a subpoena, it is worth consulting immediately with lawyers specializing in sanctions law and immigration legislation. It may be possible to file a petition with OFAC (delisting request) or obtain a special license if the violations are minor or caused by an error. When applying for a visa or green card, you need to provide documents confirming the absence of malicious intent and a willingness to cooperate with the investigation.
What common mistakes can lead to a person being served a court summons?
Receiving a court summons often becomes an unpleasant surprise for a person. At the same time, the summons may relate to civil cases, as well as criminal or administrative proceedings.
One of the most common mistakes in this matter is ignoring contractual obligations and documents. People often sign documents without reading them thoroughly, and then violate the established conditions. Carefully read every clause of the agreement and, if necessary, consult with a lawyer. Keep copies of all documents and conduct correspondence in written form to avoid misunderstandings.
Unintentional connections with sanctioned organizations or individuals can also lead to receiving a court summons. For example, if a person unknowingly conducts business with an individual or entity under sanctions, they may become involved in legal proceedings as authorities investigate the extent of their involvement and potential sanctions violations. This can be especially challenging for companies operating in high-risk jurisdictions.
Another common mistake is ignoring legal notices and letters. For example, if a person receives a claim from a counterparty or an official notice from a government agency but “puts it in the back drawer” and forgets about it. After the deadlines for a response (pre-trial procedure, administrative proceedings) expire, the other party files a lawsuit, and the recipient receives a summons.
If you moved and did not promptly inform government agencies, creditors, or counterparties of your current address, important letters (claims, warnings) may not reach you. “Non-receipt” does not exempt you from responsibility, and you may unexpectedly find yourself a defendant in a court case.
Violations in the field of media and social networks (posting false accusations, defamatory statements against individuals or companies) can also lead to receiving a subpoena. If the injured party decides to protect their business reputation, they file a lawsuit, and the author of the publication may receive a subpoena as a defendant in a lawsuit for the protection of honor and dignity.
To avoid unpleasant surprises, it is important to carefully read contracts and official notifications, respond to claims in a timely manner, notify government authorities and creditors about a change of residence, and, upon receiving claims or suspicions of wrongdoing, consult qualified attorneys without waiting for a subpoena. Our company is ready to provide professional protection and consultations. We will assess all circumstances, develop the optimal strategy, and help minimize risks regardless of the subject of the dispute or category of the case.
The latest updates on asset freezing and sanctions
Sanctions and asset freezes have become powerful tools of international pressure. In recent years, G7 countries, the EU, the US, and other major jurisdictions have expanded their sanctions regimes targeting various states, organizations, and individuals. The freezing of Russian assets remains a particularly relevant topic, along with the introduction of new restrictions on financial and cryptocurrency transactions, as well as the strengthening of national measures to combat sanctions evasion.
Actions of the G7 countries and the EU regarding frozen Russian assets
After the start of large-scale sanctions against Russia, the G7 countries and the EU froze the assets of Russian state organizations, the Central Bank, companies, and individuals. According to the latest data, the total amount of frozen Russian assets in Europe and the US exceeds $300 billion.
First and foremost, state assets and funds of the Russian Central Bank held in Western banks are subject to blocking. Additionally, the assets of Russian corporations and the funds of private oligarchs are being frozen.
One of the discussed issues remains the legal possibility of using these assets for Ukraine’s recovery. Some countries propose the full confiscation of frozen Russian state funds and their transfer for reconstruction. However, the EU is considering alternative mechanisms, including the use of interest accrued on frozen assets.
National measures in key jurisdictions (USA, United Kingdom, Germany, etc.)
The United States remains the leader in imposing sanctions and freezing assets. In 2024, the U.S. Department of the Treasury expanded the list of companies and individuals subject to sanctions. New sanctions were introduced against financial intermediaries helping to circumvent restrictions.
The United Kingdom has tightened control over sanctions through the Economic Crime Act, which simplifies the process of freezing assets and makes offshore companies transparent. Sanction pressure on banking and financial operations of Russian entities has been increased.
Germany and the European Union are taking coordinated measures to tighten the sanctions regime. The European Commission has proposed using income from frozen Russian assets to support Ukraine. Germany has tightened control over the export of dual-use goods to prevent sanctions circumvention through third countries. France and other EU countries have intensified investigations into illegal schemes for transferring Russian capital.
The impact of sanctions on cryptocurrency and digital assets
With the increase in sanction pressure, cryptocurrencies have become one of the tools through which individuals attempt to bypass restrictions. However, regulators have tightened measures in this area as well.
The USA, EU, and the UK have introduced strict requirements for crypto exchanges and financial service providers: mandatory KYC verification for large transactions, tracking transfers related to sanctioned countries, wallet blocking.
Governments and international organizations are actively developing technologies for tracking cryptocurrency transactions, including blockchain analytics. Such measures help identify sanction evasion schemes and block assets.
In the document “Proposal for a Directive of the European Parliament and of the Council on Asset Recovery and Confiscation,” the EU Council agreed on new radical measures to regulate the cryptocurrency market, which involve freezing and confiscating “unidentified” assets.
The directive is aimed at establishing minimum rules for tracking, identification, freezing, confiscation, and management of assets within the framework of criminal proceedings. It is also intended to strengthen the capacity of competent authorities to deprive criminals of income from illegal activities. Owners of “unidentified” assets will be required to prove that the value of their property does not exceed their legitimate income.
Consult a lawyer for advice!
If your assets are frozen, it is important to act quickly and competently. Our company specializes in legal assistance with asset unfreezing, developing strategies for their release, and minimizing risks.
Our specialists provide comprehensive services for asset protection and the development of strategies for their unblocking. We conduct a detailed analysis of the grounds for the blocking and assess the legal prospects of the case. Experienced lawyers will verify the client’s sanction status, analyze judicial and administrative documents, and evaluate the legality of the freeze from the perspective of international and national law.
In addition, we will help submit a delisting request. Our services: preparation of a substantiated request to regulatory authorities, interaction with international organizations and financial institutions, legal protection during the application review process.
If assets are frozen by a court decision, we develop a defense strategy and represent the client’s interests in judicial authorities. Our lawyers will prepare appeals and motions to lift the seizure, prove the unreasonableness of the freeze, and also interact with financial institutions and government bodies.
We develop legal strategies to prevent repeated blockages. Our services include a compliance audit of the company (analysis for compliance with sanction requirements), checks of transactions and counterparties to avoid the risk of falling under sanctions, and the development of internal policies for compliance with sanction legislation.
Banks often freeze accounts, suspecting illegal operations. We help prove the legality of transactions and restore access to funds: we prepare official appeals to the bank, represent the client’s interests before regulators, and, if necessary, challenge the freeze in court.
Regardless of whether your assets were frozen due to sanctions, legal proceedings, or bank audits, we will help restore control and minimize losses. Contact us right now for an initial consultation, and we will ensure the return of assets to your possession.
