Blocked accounts are frozen for political reasons or exchange control. A locked account is more serious and can be frozen due to national emergencies or exchange rate issues. Federal agencies may need to intervene to release locked accounts.
Blocked accounts are any type of bank accounts that have been frozen for political reasons, or that contain funds that are subject to some type of exchange control. The term is also sometimes applied to any account that is frozen when the account holder dies. Depending on the reasons behind the action, releasing a locked account may require the intervention of a federal revenue or treasury agency, rather than a local court directive.
A locked account is a more serious matter than a frozen account. Local authorities can freeze bank accounts for various reasons, such as in connection with a pending divorce action. Those same authorities can lift the freeze once the court case has been resolved somehow. By contrast, a locked account rarely relates to civil matters between private citizens. Instead, the focus is on the issues with the account and the currency contained in that account, and how they relate to some issue that has an impact on the nation.
One of the main reasons for a locked account has to do with the exchange rate between currencies. In the event that the currency relevant to the content of the account is blocked from trading for some reason, there is a good chance that the account will also be blocked until the currency can be traded on the forex markets once again. Meanwhile, the account holder cannot remove funds from the account, although there are situations where funds can be transferred to another account for internal use in the country issuing the currency.
A locked account can also arise in response to some kind of national emergency. In case there is some kind of political turmoil within a certain country, steps can be taken to freeze or block bank accounts for a period of time. The same strategy can be employed if some type of natural disaster occurs or if war is declared, as events of this type can cause the normal security measures that protect funds within accounts to no longer function. In situations of this nature, a federal agency or department would have the responsibility of deciding when or whether to unlock the accounts. For example, in the United States, the United States Department of the Treasury has the power to block and unblock bank accounts in circumstances that affect national security.
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