Assets freeze exemptions

What type of exemptions to the assets freeze can be requested?

Per paragraph 6 (d) of Annex B of resolution 2231 (2015), the assets freeze restrictions shall not apply to funds, other financial assets or economic resources that have been determined by relevant States:

  • to be necessary for basic expenses, including payment 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, in accordance with national laws, for routine holding or maintenance of frozen funds, other financial assets and economic resources, after notification by the relevant States to the Security Council of the intention to authorize access to such funds, other financial assets or economic resources and in the absence of a negative decision by the Council within five working days of such notification;
  • to be necessary for extraordinary expenses, provided that such determination has been notified to and approved by the Security Council;
  • to be necessary for the civil nuclear cooperation projects described in Annex III of the JCPOA, provided that such determination has been notified to and approved by the Security Council;`
  • to be the subject of a judicial, administrative or arbitral lien or judgment, provided that the lien or judgment was entered into prior to the date of adoption of Security Council resolution 1737 (2006), is not for the benefit of a designated individual or entity, and has been notified to the Security Council; or,
  • to be necessary for activities directly related to the items specified in paragraph 2 of Annex B od resolution 2231 (2015), or to any other activity required for the implementation of the JCPOA, provided that such determination has been notified to and approved by the Security Council.

In addition, the assets freeze restrictions shall not prevent a designated individual or entity from making payment due under a contract entered into prior to the listing of such individual or entity, provided that:

  • the relevant States have determined that the contract is not related to any of the prohibited items, materials, equipment, goods, technologies, assistance, training, financial assistance, investment, brokering or services referred to in Annex B of resolution 2231 (2015);
  • the payment is not directly or indirectly received by a designated individual or entity; and
  • the relevant States have notified the Security Council of the intention to make or receive such payments or to authorize the unfreezing of funds, other financial assets or economic resources for this purpose, ten working days prior to such authorization.

In addition, States may permit the addition to the accounts frozen pursuant to paragraph 6 (c) of Annex B of resolution 2231 (2015) of interest or other earnings due on those accounts or payments due under contracts, agreements or obligations that arose prior to the date on which those accounts were frozen, provided that such interest, other earnings and payments continue to be subject to these measures and are frozen.

How to make requests for exemptions from the assets freeze?

The requests/notifications for exemptions from the assets freeze should be addressed to the Security Council Facilitator, His Excellency Mr. Marc Pecsteen de Buytswerve (Belgium), through the Security Council Affairs Division, at the Email address: SC-Resolution2231@un.org.