Blocked Account

AAA

DEFINITION of 'Blocked Account'

An account that is subject to foreign exchange controls in a country that restricts the amount of its currency that can be transferred to other countries or exchanged into other currencies.

It can also refer to accounts that are frozen, either by the U.S. government for political reasons, or for other reasons (such as death of the account holder.)

INVESTOPEDIA EXPLAINS 'Blocked Account'

A blocked account is typically more serious than a frozen account, and the implication of the term is that it is longer term in nature. Once an account in the U.S. is blocked by government mandate (such as during a time of war or distress), no funds in the account can be accessed without a specific release from the U.S. Treasury.

RELATED TERMS
  1. Closed Account

    In the simplest sense, any account that has been closed out or ...
  2. Frozen Account

    An account to which no withdrawals or purchases can be charged. ...
  3. Savings Account

    A deposit account held at a bank or other financial institution ...
  4. Liability

    A company's legal debts or obligations that arise during the ...
  5. Account

    1. An arrangement by which an organization accepts a customer's ...
  6. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
Related Articles
  1. Forex Education

    How To Profit From Interventions In The Forex Market

    The forex market can be extremely profitable. Learn how to spot an intervention and trade when it's occurring.
  2. Personal Finance

    The Currency Board: Understanding The Government's Bank

    Currency board, central bank - what's the difference? Find out more about this little-known monetary authority.
  3. Forex Education

    Top 7 Questions About Currency Trading Answered

    Whether you're puzzled by pips or curious about carry trades, your queries are answered here.
  4. Brokers

    Top 7 Biggest Bank Failures

    Many people assumed these giants were too big to fall - they were wrong.
  5. Forex

    Can I hold non-dollar currencies in my retirement fund?

    Yes. You would need to find a financial institution that can facilitate these currencies in a retirement account. Many are unable to do so, as their systems are not programmed to perform the ...
  6. Investing

    How do I open a Swiss bank account, and what makes them so special?

    Surprisingly, opening a Swiss bank account is not that much different from opening a standard bank account because you have to fill out forms and provide documentation that proves who you are ...
  7. Entrepreneurship

    How is venture capital regulated by the government?

    Learn about some of the ways in which the U.S. government and the Securities and Exchange Commission regulate venture capital.
  8. Economics

    What country is the world's largest coal producer?

    Producing nearly 50% of the world's supply, China is the world's largest global coal producer and a large force in global coal pricing and trade.
  9. Economics

    What is the affect of the invisible hand on the government?

    Find out why government policy goals are often frustrated by the same forces that guide the invisible hand of the market towards efficient outcomes.
  10. Economics

    How does government regulation impact the railroads sector?

    Explore different ways that government regulation has affected the railroad sector. Learn about key laws that have been passed that impacted it.

You May Also Like

Hot Definitions
  1. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  2. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  3. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  4. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  5. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  6. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
Trading Center