Assets Freeze

I. Relevant Security Council resolutions and Committee Guidelines

The exemptions from the assets freeze are provided for by the following:

  • Security Council Resolution 2140 (2014): paragraphs 12, 13 and 14
  • Security Council Resolution 2511 (2020): paragraph 3
  • Committee Guidelines: Section 10

II. Who is entitled to submit exemption notifications to the assets freeze?

Member States who intend to authorize, where appropriate, access to frozen funds or other financial asset or economic resources.

III. What are the exemptions to the assets freeze, and how are they invoked?

There are different types of exemptions to the assets freeze, most of which require notification to the Committee:

  • For basic expenses: notification to and absence of negative decision by the Committee
  • For extraordinary expenses: notification to and approval by the Committee
  • Judicial, administrative or arbitral lien or judgement: notification to the Committee;
  • Interests, other earnings, payments under pre-sanction contracts, agreements, obligations, all of which are to remain frozen: Member States may authorize without notification to the Committee;
  • Payments due to third parties under contracts entered into prior to listing: notification to the Committee.
1. The basic expenses exemption

Pursuant to paragraph 12 (a) of resolution 2140 (2014) as well as Sections 10 (a) and 10 (b) of the Committee Guidelines, notifications for the basic expense are to be submitted to the Committee, and should, as appropriate, include the following information:

  1. Recipient (name and address)
  2. Recipient’s bank information (name and address of bank, account number)
  3. Purpose of payment and justification of the determination of the expenses falling under the basic expenses exemption:
  • Basic expenses, including payment for foodstuffs, rent or mortgage, medicines and medical treatment, taxes, insurance premiums, and public utility charges;
  • Payment of reasonable professional fees and reimbursement of incurred expenses associated with the provisions of legal services;
  • Fees or service charges for routine holding or maintenance of frozen funds or other financial asset or economic resources.
2. The extraordinary expenses exemption

Pursuant to paragraph 12 (b) of resolution 2140 (2014), as well as Section 10 (c) of the Committee Guidelines, notifications for the extraordinary expenses are to be submitted for the Committee’s consideration and approval.

  1. Recipient (name and address)
  2. Recipient’s bank information (name and address of bank, account number)
  3. Purpose of payment and justification of the determination of the expenses falling under the extraordinary expenses (other categories than the ones mentioned under paragraph 12 (a) of resolution 2140 (2014)
  4. Amount of installment
  5. Number of installments
  6. Payment starting date
  7. Bank transfer or direct debit
  8. Interests
  9. Specific funds being unfrozen
  10. Other information.

Please note that Member States are encouraged, when submitting notifications for the extraordinary expenses exemption, to report in a timely way on the use of such funds, with a view to preventing such funds from being used to conduct any of the acts described in the Listing Criteria.

3. The judicial, administrative or arbitral lien or judgement exemption

Pursuant to paragraph 12 (c) of resolution 2140 (2014), notifications for the authorization of unfreezing of funds, other financial assets and economic resources for payment of a judicial, administrative or arbitral lien or judgment are to be submitted to the Committee, provided that the lien or judgment was entered into prior to the date of the present resolution and is not for the benefit of a designated individual or entity.

4. The interests, other earnings, payments under pre-sanction contracts, agreements or obligations exemption

Pursuant to paragraph 13 of resolution 2140 (2014), as well as Section 10 (f) of the Committee Guidelines, Member States may allow for the addition to accounts subject to the assets freeze of:

(i) interest or other earnings due on those accounts, or

(ii) 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 (see i. above) and payments continue to be subject to the assets freeze.

5. The payments due to third parties under contracts entered into prior to listing exemption

Pursuant to paragraph 14 of resolution 2140 (2014), as well as Section 10 (g) of the Committee Guidelines, notifications on making or receiving payments due under a contract entered into prior to the listing of a person or entity, or on authorizing, where appropriate, the unfreezing of funds, other financial assets or economic resources for this purpose, submitted to the Committee ten working days prior to such authorization, may be submitted provided that the relevant Member States have determined that the payment is not directly or indirectly received by a designated individual or entity.

IV. How to make a notification for exemption to the assets freeze?

Please submit exemption requests/notifications to the assets freeze, through your relevant Permanent Mission to the United Nations, addressed to:

  • The Chair of the Committee, His Excellency Mr. Joonkook Hwang (Republic of Korea) through the Permanent Mission of the Republic of Korea to the United Nations

With copy to:

V. Decision Making of the Committee

The Committee, through the Secretariat, will immediately acknowledge receipt of the notification for the basic expenses exemption. Should no negative decision be taken by the Committee within the requisite five working day period, the Committee, through its Chair, will inform the notifying Member State thereof. The Committee, thorough its Chair, will also inform the notifying Member State if a negative decision has been taken regarding the notification.

The Committee, through its Chair, will inform the Member States notifying extraordinary expenses about its decision.