By · · last updated 2026-08-08
Blocked assets are frozen pending OFAC action; seized assets are confiscated via forfeiture. The distinction that matters when your payment hits a block.
Blocked and seized sound interchangeable. They are different legal states with different consequences - and the difference matters when your payment path hits one.
A blocked asset is frozen: you hold it, you do not transact it, and OFAC decides its fate. Your payment to a blocked party is held, not lost - and holding it is the compliant act.
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A seized asset is confiscated through forfeiture - by the government, typically after a violation or criminal case. Seizure is the consequence; blocking is the state.
When screening blocks a payment, the funds stay blocked (held) pending review - that is the compliant posture. If the violation escalates to enforcement, forfeiture is where seized comes in. The blocked-transaction explainer covers the mechanics.
Confusing the two leads teams to unfreeze blocked funds (a violation) or treat held funds as lost (a bookkeeping error). Blocked is a state; seized is a consequence.
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