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American Morning

Ask CNN: What is the Difference Between Freezing and Seizing Assets?

Aired December 12, 2001 - 07:28   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)

UNIDENTIFIED CORRESPONDENT: Pamela Burns from Longwood Florida asks, "What is the difference between freezing and seizing assets?"

TASIA SCOLINOS, SPOKESWOMAN, U.S. DEPARTMENT OF THE TREASURY: Pamela, that's a great question and I'm asked that, actually, several times a day. The difference between freezing assets and seizing assets is technical, but it actually is very different. When assets are frozen, it means that the account being frozen is suspended in time. No money can go into that account, no money can go out of the account and perhaps most importantly, they cannot transfer that account to any other trustee. The account remains with the bank.

Now, when assets are seized, it's a different story. The account would move from wherever it was originally to the entity that is actually seizing it.

So it's two very different things. In one instance, the account is just frozen. No financial transactions can take place. Where in the other instance, when the account is actually seized, that account is moved and is possessed by the entity that is actually seizing it.

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