what do the news mean when they say the goverment froze the bank accounts of a person?

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what do the news mean when they say the goverment froze the bank accounts of a person?

In: Economics
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They’re frozen like a river. Can’t do anything, can’t go anywhere. In short, the government called up the bank and told them to halt all future transactions on that specific account/s.

From there they’ll usually spend time combing through recent transactions to figure out if anything illegal was being done with that money. This is where they’d try to trace back where all the money came from and where it’s been going.

It means that there is a law in that country that allows the government, probably in the firm of the police, to contact any banking institutions holding a person’s money, and inform them that nobody is allowed to access that money until the government or courts say otherwise. These institutions will be subject to large fines if they do allow anybody to access the money.

Not to mention huge pain in the ass investigations into what other banking laws are they breaking.

One of the reasons why rich naughty people spread their money internationally. You can’t freeze what you don’t know about. Or what’s outside your jurisdiction.

It typically means that a law enforcement agency contacted the bank and told them to stop all transactions, transfers, payments, or any other activity for this person’s account until further notice.

Fun fact, when this happens to ACH transfers (mostly used for checks and things like Payroll deposits), the stop code is 16.