Which action should an institution take after freezing funds for a customer who became an...

EU sanctions require financial institutions to immediately freeze the funds or economic resources of designated persons and promptly report the freeze to the competent national authority. Reporting is mandatory to ensure oversight and enforcement.

Banks must not transfer frozen funds, and they must not freeze accounts of family members unless those individuals are also designated or otherwise meet ownership/control criteria. Institutions also do not notify the customer directly, as doing so may undermine regulatory requirements.