Security Council Committee established pursuant to resolution 1267 (1999) concerning Al-Qaida and the Taliban and Associated Individuals and Entities

Fact Sheet on the Exemptions to the Assets Freeze

1. This fact sheet provides basic information on the exemptions to the assets freeze measure imposed by the Security Council on the individuals and entities on the Consolidated List.


2. By resolution 1452 (2002) , as amended by resolution 1735 (2006) , the Security Council decides that the assets freeze detailed in paragraph 1 (a) of resolution 1735 (2006) does not apply to funds and other financial assets or economic resources that have been determined by the relevant State(s) to be:
   
   1. necessary for basic expenses, including payments for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges, or exclusively for payment of reasonable professional fees and reimbursement of incurred expenses associated with the provision of legal services, or fees or service charges for routine holding or maintenance of frozen funds or other financial assets or economic resources, after notification by the relevant State(s) to the Committee of the intention to authorize, where appropriate, access to such funds, assets or resources and in the absence of a negative decision by the Committee within 3 working days of such notification;
      
   2. necessary for extraordinary expenses, provided that such determination has been notified by the relevant State(s) to the Committee and has been approved by the Committee;


3. In addition, paragraph 2 of resolution 1452 (2002) stipulates that all States may allow for the addition to accounts subject to the assets freeze of:
   
   1. interest or other earnings due on those accounts, or
      
   2. payments due under contracts, agreements or obligations that arose prior to the date on which those accounts became subject to the assets freeze
      
   provided that any such interest, other earnings and payments continue to be subject to the assets freeze.


4. The provision of the Committee’s guidelines for the application of exemptions to the assets freeze pursuant to resolution 1452 (2002), as amended by resolution 1735 (2006), can be found in Section 9. Details on the information that notifications and requests should, as appropriate, include are available in sub-paragraph (c) of Section 9.


5. Any exemption notification/request should be submitted by the relevant State(s) to the Committee’s Chairman through the Committee’s Secretariat (e- mail: SC-1267-Committee@un.org or fax: +1 212 963 1300).

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