1. Bank account in a currency subject to Exchange Controls by monetary authorities. Some countries restrict or prohibit out-of-country transfers from domestic bank accounts in the local currency. The result is an overvalued currency, in relation to free-market currencies that are not inhibited by currency controls. For example, an exporter may be prohibited from drawing against an account in a blocked currency, except for internal transfers of funds.
2. Any bank account frozen for political reasons, usually during wartime or national emergency. In the United States, funds in these blocked accounts owned by foreign governments or private individuals may not be touched, unless released by the U.S. Treasury. See also Frozen Account; Warning Bulletin.
