National Authorities May Release Frozen Funds to Enforce Preexisting Financial Guarantee, EC Says
National competent authorities may authorize the release of funds frozen under European Union sanctions to satisfy the terms of a preexisting financial guarantee, the European Commission said in a June 2 opinion. An NCA had asked the European Union to…
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determine whether funds subject to the Central African Republic sanctions regime could be used to pay a guarantee. The commission found that the use of frozen funds toward a guarantee amounts to a “payment” under Article 9, which says funds can be unfrozen to make payments due before the listing. Provided that all the conditions of Article 9 are met, the guarantee can be fulfilled “without the consent of or against the Designated Person.” Ultimately, the commission said, it is up to the NCA to determine if the conditions are fulfilled and, in particular, whether the payment of the guarantee was due before the sanctions.