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. Account

    1. An arrangement by which an organization accepts a customer's ...
  3. Frozen Account

    An account to which no withdrawals or purchases can be charged. ...
  4. Liability

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

    A deposit account held at a bank or other financial institution ...
  6. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
Related Articles
  1. How To Profit From Interventions In ...
    Forex Education

    How To Profit From Interventions In ...

  2. The Currency Board: Understanding The ...
    Personal Finance

    The Currency Board: Understanding The ...

  3. Top 7 Questions About Currency Trading ...
    Forex Education

    Top 7 Questions About Currency Trading ...

  4. Top 7 Biggest Bank Failures
    Brokers

    Top 7 Biggest Bank Failures

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center