Procedures for unlocking or using frozen funds and economic resources

Article 9 of Sovereign Ordinance no. 8.664 of 26 May 2021amended, pertaining to the procedures for freezing funds and economic resources provides that authorisation to unlock or use frozen funds or economic resources may be granted by means of a ministerial decision, in accordance with the conditions laid down by the economic sanctions regime imposed by the UN, the European Union or the French Republic. 

Article 4 of theamended, states that this authorisation may be issued if the applicant can prove that his or her request meets one of the conditions for unlocking funds established by the relevant sanctions regime.

All requests to unlock funds frozen in accordance with the provisions of Sovereign Ordinance No. 8.664amended should be addressed, either directly by the individual whose funds have been frozen or a duly authorised representative, or by the bank which has implemented the freezing measure, to the Department of Budget and Treasury by email using the address: dbt.geldefonds@gouv.mc  

Such requests must:

• Ensure that the justification for unlocking funds addresses the basis on which the request is being made
• Note the exact amount of funds to be unlocked and the bank account from which the funds should be released
• Be accompanied by all relevant supporting documents

The decision to authorise the unlocking or use of frozen funds shall be notified by email with a request for acknowledgement of receipt to the individual whose funds have been frozen, as well as to the bank which implemented the decision and, where appropriate, to the representative who submitted the request.

The main justifications for unlocking funds relate to the expenditure required to meet the basic needs of the individuals listed and members of their family for whom they are responsible. These needs include:

• Expenditure on food, clothing and personal hygiene
• Rent, payments to energy suppliers, building management fees
• Mortgage repayments
• Mandatory insurance premiums and contributions
• Children’s school fees
• Healthcare expenditure
• Taxes, duties and charges
• Fees and commission for custody and management of frozen funds or economic resources
• Reasonable fees and reimbursement of expenditure on legal services

If authorisation is granted to unlock funds, the amounts required to cover these expenses will be paid directly by the bank to the creditor, with the exception of the amount allocated for food, clothing and personal hygiene expenditure.

Authorisation to unlock funds may be granted to pay monies due under a contract or agreement concluded by the individual whose funds have been frozen before his or her inclusion on the national asset freezing list, on condition that the payment is not being made to an individual or entity included on the national asset freezing list.

In accordance with Article 10 of Sovereign Ordinance no. 8.664amended, frozen bank accounts may be credited provided that all additional funds paid into these accounts are also frozen. The bank must then inform the Department of Budget and Treasury.

Any individual or organisation who shares the same or a similar name with a person or entity designated under a measure to freeze funds and whose funds or economic resources have been inadvertently frozen may contact the Department of Budget and Treasury.

To this end, the person or entity concerned should submit their request by email to the Department of Budget and Treasury, supplying all relevant identity documents for verification by the appropriate departments. 

Assuming that this verification process confirms that the person or entity concerned is not a person or entity included on the national asset freezing list, the Department of Budget and Treasury will issue a notification to have the inadvertently frozen funds unlocked.