Should an institution tell its customer that it blocked their funds, and, if so, how does the institution explain it to them?

OFAC's answer

An institution may notify its customer that it has blocked funds in accordance with OFAC's instructions. The customer has the right to apply for the unblocking and release of the funds. To apply online to have the funds released, please go to our [online application page](https://ofac.treasury.gov/ofac-license-application-page).